Today at 12:30 and 14:30 (GMT), a significant increase in volatility in USD, CAD quotes and, accordingly, in USD/CAD is expected. The pair maintains positive dynamics, staying in the bull market zone, above the key support levels 1.2550 (200 EMA on the monthly chart), 1.2740 (200 EMA on the daily chart), and 1.2850 (200 EMA on the weekly chart).
The breakdown of resistance levels 1.2880 (50 EMA on the daily chart), 1.2918 (200 EMA on the 4-hour chart) will be the first signal for resuming long positions, and the breakdown of the resistance level 1.2975 (200 EMA on the 1-hour chart) will be a confirming one.
A breakdown of the local resistance level 1.3070 will confirm the bullish market sentiment and send the pair towards the resistance level 1.3450 (23.6% Fibonacci retracement level of the downward correction in the USD/CAD growth wave from 0.9700 to 1.4600) with the prospect of further growth.
In an alternative scenario, USD/CAD will break through the support level of 1.2850 and fall to support level of 1.2770 (144 EMA on the daily chart) and 1.2740 (50 EMA on the weekly chart, 200 EMA on the daily chart and 38.2% Fibonacci retracement). Its breakdown will be the first signal that USD/CAD will return to a long-term bear market zone.
The breakdown of support levels 1.2550 (200 EMA on the monthly chart), 1.2520 (local support level) will increase the risks of a further decline in USD/CAD and a resumption of the global downward trend.
Support levels: 1.2850, 1.2800, 1.2770, 1.2740, 1.2700, 1.2550, 1.2520
Resistance levels: 1.2880, 1.2918, 1.2960, 1.2975, 1.3070, 1.3100, 1.3223
Trading Tips
Sell Stop 1.2840. Stop-Loss 1.2925. Take-Profit 1.2800, 1.2770, 1.2740, 1.2700, 1.2550, 1.2520
Buy Stop 1.2925. Stop-Loss 1.2840. Take-Profit 1.2960, 1.2975, 1.3070, 1.3100, 1.3223
