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USDCAD is Preparing for the Strengthening of the Downward Dynamics
11/28/2022 11:14 PMThe USD/CAD pair is declining, trading at 1.3453 in response to positive data from Statistics Canada.
According to the latest survey, the situation of small and medium-sized enterprises in the third quarter improved markedly: 23.5% of enterprises expect difficulties in acquiring resources, and not 26.8%, as it was before, against the backdrop of a decline in inflation to 6.9% from a peak of 8.1%, only 32.4% of organizations expect a new price increase, which is lower than 34.0% in the previous period; and 34.4% predict a decline in profitability, up from the previous 35.9%. Overall, 29.8% of businesses said they still have problems maintaining inventory levels or purchasing, which is lower than the previous estimate but still quite a lot.
The US currency holds at last week's close at 106.200 in the USD Index: Thanksgiving hiatus is over, but key statistics are not expected until tomorrow when the Conference Board consumer confidence index for November is released. According to analysts' forecast, the index may fall to 100.0 points from 102.5 points earlier, thus continuing the negative trend of last month, when the index retreated from 107.8 points.
On the daily chart, the asset again approached the Neckline of the previously implemented Head and shoulders pattern to test it.
The EMA fluctuation range on the Alligator indicator remains downwards, increasing the likelihood of the trend continuing, and the AO oscillator histogram forms bars in the sell zone.
Resistance levels: 1.3500, 1.3630. | Support levels: 1.3335, 1.3223.