Being above the key support levels 1.3145 (200 EMA on the daily chart), 1.2940 (200 EMA on the weekly chart), 1.2600 (200 EMA on the monthly chart), USD/CAD remains in the zone of a long-term bull market.
The main event in the dynamics of the Canadian dollar and the USD/CAD pair this week may be tomorrow's meeting of the Bank of Canada.
In general, the upward dynamics prevails, and if tomorrow's decision satisfies the bulls in the USD/CAD pair, then the breakdown of the recent local high at 1.3645 will be a signal to increase long positions. In this case USD/CAD will go towards the upper boundary of the upward channel on the weekly chart and to 1.4100, 1.4200, 1.4300 with intermediate targets at 1.3800, 1.3900.
Alternatively, the signal for the resumption of short positions will be a breakdown of today's low at 1.3570, with the nearest target at support levels 1.3471 (200 EMA on the 4-hour chart), 1.3450 (50 EMA on the daily chart and the 23.6% Fibonacci retracement of the downward correction in the USD/CAD growth wave from 0.9700 to 1.4600).
A breakdown of these support levels may trigger a deeper decline up to the key support levels 1.3240, 1.3145.
In general, the USD/CAD bullish trend prevails, and given the strong upward momentum, it is still logical to assume further growth.
Support levels: 1.3570, 1.3500, 1.3471, 1.3450, 1.3400, 1.3240, 1.3145
Resistance levels: 1.3645, 1.3700, 1.3800, 1.3830, 1.3900, 1.3977, 1.4000
Trading Tips
Sell Stop 1.3560. Stop-Loss 1.3650. Take-Profit 1.3500, 1.3471, 1.3450, 1.3400, 1.3240, 1.3145
Buy Stop 1.3650. Stop-Loss 1.3560. Take-Profit 1.3700, 1.3800, 1.3830, 1.3900, 1.3977, 1.4000
