Current trend

The USD/CAD pair is correcting around 1.4061. The acceleration of the growth rate of the US dollar only increases the potential for a further upward trend in the instrument, which does not stop despite the positive statistics from Canada.

The total value of Building Permits issued in September increased by 11.5% or 1.3 billion Canadian dollars to 13.0 billion Canadian dollars, the highest since January 2017. The largest contribution to the growth of the indicator was made by the construction of non-residential premises, the cost of which increased in September by 18.0% (797.5 million dollars) to 5.2 billion dollars. Also, today at 13:30 (GMT 2), September data on Wholesale Sales, which could add 1.0% from –0.6%, and Manufacturing Sales, which analysts expect to fall 0.7% from –1.3%, will be released.

In turn, the US dollar continues the global trend: in today's trading, its quotes rose to 106.60 in USDX, which is the highest value since the beginning of autumn 2023. The key factor in the growth was the improvement in the situation on the labor market, which was ensured by a decrease in Initial Jobless Claims to 217.0 thousand from 221.0 thousand, as well as a drop in Continuing Jobless Claims to 1.873 million from 1.884 million. The average number of jobless claims over the past 4 weeks has decreased from 227.25 thousand to the May low at 221.00 thousand.

Support and resistance

On the daily chart, the price is correcting, remaining within the Expanding Formation pattern with dynamic boundaries of 1.4080–1.3340.

Technical indicators that are in a buy state maintain a stable signal. The EMA fluctuation range on the Alligator indicator remains wide, and the fast EMAs move away from each other, while the AO histogram forms new correction bars, located above the transition level.

Support levels: 1.4010, 1.3860.

Resistance levels: 1.4080, 1.4230.

Trading tips

If the asset continues growing and the price consolidates above 1.4080, buy positions with the target of 1.4230 will be relevant. Stop-loss — 1.4000. Implementation time: 7 days and more.

If the asset starts declining and the price consolidates below the support level of 1.4010, short positions can be opened with the target at 1.3860. Stop-loss — 1.4080.