On Thursday the pair USD/CAD was reducing which was caused more by technical correction rather than by the release of macroeconomic indicators. Generally, the US dollar is quite stable against the Canadian currency which is confirmed by continuous growth in the recent weeks.
Yesterday traders focused their attention on USD due to the announcement of the new head of the Fed. The choice of Jerome Powell put certain pressure on USD as the “bulls” expected John Taylor to take this post.
The main event of today will be the release of nonfarm payrolls and unemployment level data in the USA. Canada will respond with a report on unemployment rate changes. The market is expected to be highly volatile.
On the H4 chart the instrument is showing side movement within a narrow corridor formed by the middle and lower lines of . histogram is near the zero mark, and the signal line is directed downwards.
Support levels: 1.2785, 1.2750, 1.2700.
Resistance levels: 1.2850, 1.2900, 1.2950, 1.3000.
Sell positions may be opened from the current level with target at 1.2750 and stop-loss 1.2870. The period of implementation is 1-3 days.
Long positions may be opened from the level of 1.2870 with target at 1.2920 and stop-loss at 1.2835. The period of implementation is 3-5 days.