USD/CAD analysis on September 13, 2022
On Tuesday, the downward dynamics of USD/CAD persists. The sellers are aimed to hold below the support 1.3000, although yesterday by the end of the session the buyers were able to intercept the initiative and quickly pushed the quotation away from the local minimum.
Probably the Canadian dollar would have had more chances to succeed, but the Canadian labor market report released on Friday deprived the "Loonie" of that support. Employment fell by 39.7 thousand in August, while the forecast was for an increase of 15.0 thousand. The unemployment rate rose from 4.9% to 5.4%. On the positive side, the average hourly earnings rose from 5.44% to 5.8% and the capacity utilization rate increased.
Technical Analysis for USD/CAD
On the daily chart, the graphical patterns and technical indicators suggest a change in direction.
Thus, the Bollinger indicator after a confident growth is rebuilt in a horizontal plane.
The MACD indicator will soon cross the zero level from above downwards and move into the negative range.
Stochastic oscillator has reached the area of minimal values.
In case the price fixes below support at 1.2950, we open short positions towards 1.2850. Stop-loss is placed at 1.3000.
In case of a breakthrough upward of resistance at 1.3000, we consider buying with the next target at 1.3100. Let's set a protective stop at 1.2950.