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  • USD/CAD is having trouble to resume the main bull trend as the pair is facing massive resistance at the 1.3120-1.3155 area and the bearish daily trendline. CAD gained in strength after the release of the Bank of Canada Consumer Price Index Core year-on-year to July came in at 1.6% versus 1.3% forecast.
  • USD/CAD is currently supported by the ascending trendline on the daily chart and once bears break below it the target becomes 1.2959 August 7 low. Bears need to break below 1.3048 August 14 low in order to escape the current 1.3050-1.3155 range.  
  • Since the average daily range has already been reached USD/CAD might enter a consolidation phase and the drop might happen next week.

USD/CAD daily chart

Spot rate:                    1.3074
Relative change:          -0.60%  
High:                           1.3171
Low:                            1.3063

Trend:                                  Bullish  
Short-term Trend:                Bearish below 1.3200

Resistance 1:             1.3100 figure  
Resistance 2:             1.3120-1.3155 area, supply/demand level and June 18 low
Resistance 3:             1.3172 August 13 swing high  
Resistance 4:             1.3200 figure  
Resistance 5:             1.3271 June 29 high  
Resistance 6:             1.3350 figure
Resistance 7:             1.3388, 2018 high
Resistance 8:             1.3543 June 9, 2017 swing high

Support 1:                  1.3048-1.3066 area, August 14 low and July 9 low
Support 2:                  1.3022 July 25 low
Support 3:                  1.3000 figure
Support 4:                  1.2959 August 7 low
Support 5:                  1.2900 figure
Support 6:                  1.2855 June 6 low