Current trend

The USD/CAD pair has been adding value for five weeks in a row, but the last two sessions there's a correction amid uncertain investor sentiment awaiting the results of the US presidential election: at the moment, quotes are held around 1.3883. According to recent polls, both candidates — Donald Trump from the Republican Party and Kamala Harris from the Democratic Party — have an almost equal number of votes. Under these conditions, it may take several days to determine the winner, during which the market movement will remain unstable.

Experts fear that if Donald Trump wins, the politician will impose additional duties on exports to the United States in the amount of 10.0–20.0% and tighten migration rules, which will affect Canadian workers. In this case, the Canadian economy may face a recession. Experts also point out possible difficulties in the event of Kamala Harris's victory: she is likely to put pressure on the Canadian authorities to increase defense spending to 2.0% of GDP and ease taxes on digital services. Nevertheless, according to analysts, her presidency will bring fewer economic losses for the country.

In the near future, the pair is likely to fluctuate at 1.3910 (Murrey level [6/8]) and will begin a rapid movement only after the final determination of the winner of the US presidential race.

Support and resistance

Technically, the price is in the area of four-month highs: with a breakdown of the central line of Bollinger Bands (1.3840) the decline may continue towards the targets of 1.3671 (Murrey level [4/8]) and 1.3550 (Murrey level [3/8]). The key for the "bulls" is the November high of 1.3960, consolidation above which will ensure the resumption of upward dynamics to the level of 1.4160 (Murrey level [8/8]).

Technical indicators do not give a clear signal, illustrating the uncertainty of the market: Bollinger Bands are directed upwards, MACD is stable in the positive zone, and Stochastic is pointing downwards.

Resistance levels: 1.3960, 1.4160.

Support levels: 1.3840, 1.3671, 1.3550.

Trading tips

Long positions can be opened from 1.3960 with a target of 1.4160 and a stop-loss around 1.3870. Implementation period: 5–7 days.

Short positions should be opened below the level of 1.3840 with targets of 1.3671, 1.3550 and a stop-loss around