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USDCAD Price Failed to Consolidate Above the 1.353 Mark

12/5/2022 1:19 PM

Last week, the price of the USD/CAD pair went beyond the resistance level of 1.3530 in an attempt to return to the uptrend, however, against the background of the weakness of the USD, buyers failed to consolidate above this mark. The main factor driving the decline in the quotes of the instrument is the publication of strong statistics on the Canadian labor market last Friday: the change in the employment rate exceeded the projected 5.0K, reaching 10.1K, and the unemployment rate decreased by 0.1% to 5.1%, despite the fact that analysts expected an increase to 5.3%.

Thus, the "bears" managed to maintain a long-term downtrend, and now the quotes target is the 1.3250-1.3200 area, in case of a breakdown of which the movement will continue to the 1.2970 area. To reverse the trend, it will take a breakout of the resistance level of 1.3530 and consolidation of the price above it. In this case, it is worth considering buying an asset with a target at 1.3735.

The mid-term trend remains upward. At the moment, market participants are re–testing the key support of 1.3393-1.3370, and if it is held, the growth is likely to continue, and the maximum of last week at 1.3644 will be updated. In case of a breakdown of the key support, the trend will change to a downward one. In this case, it is worth considering short positions with a target in the area of zone 2 (1.3150–1.3127).

Resistance levels: 1.3475, 1.3530, 1.3735. | Support levels: 1.3250, 1.3200.

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