Daily chart: The USDCAD pair is forming a higher low pattern, below the resistance level of 1.0321. If the pair manages to break the support at the 1.0281 level, it is expected to fall to 1.0199 level, because this pair could break the bullish trend line. Moreover, this pair may break the resistance level at 1.0321 and climb to the level of resistance at 1.0411. For now, this pair is still very bearish, but this is still above the 200-day moving average, so we must be cautious. The MACD indicator remains in negative territory and still shows no signs of extreme oversold.
H4 chart: The loonie is trying to break the resistance level at 1.0325. If successful, it is expected to rise to the level of 1.0341. Furthermore, if the loonie manages to break the support level of 1.0293, it is expected to drop to the level of 1.0270. The USDCAD pair remains below the 200-day moving average and it is very likely, that this pair manages to break the support at the 1.0270 level, where there is a bullish trend line and if it gets to do, it would be expected to fall to 1.0235 level. The MACD indicator remains in positive territory, but this may change to negative territory in the coming hours.
H1 chart: The USDCAD pair is in a Point of Control (POC) at the level of 1.0312. If this pair manages to break the resistance level at 1.0335, it is expected to rise to the level of 1.0369. On the other hand, the bearish trend could push this pair, so you can break the support level at 1.0281 and fall to the level of 1.0252. As in the H4 chart, the loonie remains below the 200-day moving average, but the MACD indicator is showing extreme overbought in this pair, which could support a bearish outlook on this pair for today's session.
Fundamental Outlook: For today's session the Core Durable Goods Orders (Previous: 0.5% / Forecast: 0.5%) and the Unemployment Claims (Previous: 334K / Forecast: 339K) will be published at 12:30 GMT in the United States
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD / CAD pair with a bearish candlestick breaks, the support level is at 1.0281, take profit is at 1.0252, and stop loss is at 1.0312.
