The focus of market participants following the quotes of the Canadian dollar will be the release of the Canadian manufacturing PMI (at 14:30 GMT) and the U.S. manufacturing PMI (at 15:00 GMT) from the Institute for Supply Management (ISM).
From a technical point of view, being above the key support levels 1.3380 (144 EMA on the daily chart), 1.3300 (200 EMA on the daily chart), 1.3250 (50 EMA on the weekly chart), 1.3020 (200 EMA on the weekly chart), USD/CAD remains in the long-term bull market zone, which means that long positions are still preferable, despite today's correction.
The breakdown of the local resistance level 1.3665 (February high) will confirm the main growth scenario for the pair.
In an alternative scenario, the breakdown of the important short-term support levels 1.3545 (200 EMA on the 1-hour chart), 1.3475 (200 EMA on the 4-hour chart and 50 EMA on the daily chart) will be a signal for the resumption of short positions with targets at support levels 1.3380, 1.3300, 1.3250. A breakdown of the support at 1.3020 will aggravate the position of buyers of the pair and increase the risks of its further decline towards the key support level 1.2640 (200 EMA, 144 EMA on the monthly chart), which separates the long-term USD/CAD bullish trend from the bearish one.
Support levels: 1.3545 1.3500 1.3475 1.3450 1.3400 1.3380 1.3300 1.3270 1.3250 1.3200 1.3100 1.3020 1.2990 1.2740 1.2600
Resistance levels: 1.3665, 1.3700, 1.3800, 1.3830, 1.3900, 1.3970, 1.4000
Trading scenarios
Sell Stop 1.3550. Stop-Loss 1.3670. Take-Profit 1.3500, 1.3475, 1.3450, 1.3400, 1.3380, 1.3300, 1.3270, 1.3250, 1.3200, 1.3100, 1.3020, 1.2990, 1.2740, 1.2600
Buy Stop 1.3670. Stop-Loss 1.3550. Take-Profit 1.3700, 1.3800, 1.3830, 1.3900, 1.3970, 1.4000