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USDCAD Trading within the Global Triangle Pattern

2/17/2023 12:00 PM

Against the poor Canadian macroeconomic statistics, the USD/CAD pair is growing, trading at 1.3487.

So, yesterday it became known that sales in the manufacturing sector in December corrected by –1.5% after falling by –0.2% last month, while the indicator for wholesale products decreased by 0.8% from –0 .7% earlier, which was the second month of negative dynamics in a row. Today, new macroeconomic data will be published: analysts expect a downward correction in prices for industrial goods in January by 0.1%, while the index of commodity prices may decline by 0.2%, continuing the 10-month negative trend.

The US dollar is gaining momentum, trading today at 104.200 in the USD Index for the first time since January 5. Positive dynamics are developing despite restrained data on the labor market: initial jobless claims amounted to 194.0K, down from 195.0K applications a week earlier, which led to an increase in the total number of claims to 1.696M from 1.680M

On the daily chart, the trading instrument is moving within the global Triangle pattern with dynamically narrowing boundaries 1.3530–1.3260, rising towards the resistance line.

Technical indicators are ready to reverse and give a buy signal: the range of fluctuations of the EMA on the Alligator indicator is narrowing, and the AO histogram is forming rising bars, approaching the transition level.

Resistance levels: 1.3530, 1.3670. | Support levels: 1.3400, 1.3260.

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