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USDCAD Ambiguous Trading Current Trend

2/13/2023 10:57 AM

During the Asian session, the USD/CAD pair is growing moderately, correcting after a noticeable decline at the end of last week, and is testing 1.3370 for a breakout.

The reason for the emergence of the confident "bearish" trend on Friday was the publication of a strong report on the Canadian labor market for January: the number of employed rose by 150.0K after an increase of 69.2K (revised from 104.0K) in December, although analysts expected amplification ten times less. Against this background, the share of the labor force in the total population increased from 65.4% to 65.7%, while experts expected a slowdown to 64.8%, and the unemployment rate remained at the same level of 5.0% compared to growth forecasts up to 5.1%.

In the US, on Friday, positive data on consumer confidence from the University of Michigan for February came out: the indicator increased from 64.9 points to 66.4 points, better than market expectations of 65.0 points.

On the daily chart, Bollinger bands are moving flat: the price range is practically unchanged, remaining quite spacious for the current level of activity in the market. The MACD indicator is falling, keeping a poor sell signal (the histogram is below the signal line). Stochastic shows a more confident decline, quickly retreating from the level of "80", renewed in the middle of last week.

The current readings of technical indicators do not contradict the further development of the "bearish" trend in the nearest time intervals.

Resistance levels: 1.3400, 1.3450, 1.3500, 1.3550. | Support levels: 1.3350, 1.3300, 1.3226, 1.3150.

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