USD/CAD Technical Analysis and Trading Tips on January 5, 2023

Being above the key support levels 1.3235 (200 EMA on the daily chart), 1.2970 (200 EMA on the weekly chart), USD/CAD remains in the long-term bull market zone.

Tomorrow's publication of data from the U.S. and Canadian labor markets may become the main driver of the pair for several days ahead.

In general, the upward dynamics prevails, and a consistent breakdown of the resistance levels 1.3535 (50 EMA on the daily chart), 1.3554 (200 EMA on the 4-hour chart), 1.3570 (200 EMA on the 1-hour chart) will create prerequisites for further growth of the pair. The nearest target is the 1.3700 local resistance level.

In an alternative scenario, the signal for the resumption of short positions will be a breakdown of today's low at 1.3470 and support at 1.3450 (23.6% downward correction in the USD/CAD growth wave from 0.9700 to 1.4665) with targets at support levels 1.3335 (144 EMA on the daily chart), 1.3235, 1.3185 (50 EMA on the weekly chart).

Support levels: 1.3470, 1.3450, 1.3400, 1.3335, 1.3300, 1.3235, 1.3200, 1.3185

Resistance levels: 1.3535, 1.3554, 1.3570, 1.3615, 1.3700, 1.3800, 1.3830, 1.3900, 1.3977, 1.4000

Trading tips

Sell Stop 1.3460. Stop-Loss 1.3540. Take-Profit 1.3450, 1.3400, 1.3335, 1.3300, 1.3235, 1.3200, 1.3185

Buy Stop 1.3540. Stop-Loss 1.3460. Take-Profit 1.3554, 1.3570, 1.3615, 1.3700, 1.3800, 1.3830, 1.3900, 1.3977, 1.4000