FX.co ★ USD/CAD Technical Analysis and Trading Tips for October 6, 2022

Given the strong upward momentum, it is logical to assume further growth. USD/CAD is in the bull market zone above the key support levels 1.2890 (200 EMA on the weekly chart) and 1.2925 (200 EMA on the daily chart).

As of writing, USD/CAD is trading near 1.3680, breaking through the 1.3609 resistance level (200 EMA on the 1-hour chart) at the beginning of the European trading session, which has now become another support level in the USD/CAD global upward trend.

Technical indicators OsMA and Stochastic on the weekly and monthly charts also signal long positions. More conservative buyers can wait for the breakdown of local resistance levels 1.3695, 1.3710.

The driver of today's movements in the USD/CAD pair may be the publication at (12:30 GMT) of important macro statistics for the US and Canada and speeches (at 12:50, 15:35, 17:00, 21:00, 22:30) of Fed and Bank of Canada representatives.

In an alternative scenario, and after the breakdown of the 1.3609 support level, the correction of the pair may be delayed up to the support levels 1.3500, 1.3450 (23.6% Fibonacci retracement of the downward correction in the USD/CAD growth wave from the level of 0.9700 to the level of 1.4600), 1.3350 (200 EMA on the 4-hour chart), 1.3255 (50 EMA on the daily chart). A deeper decline is unlikely.

Support levels: 1.3609, 1.3500, 1.3450, 1.3350, 1.3255

Resistance levels: 1.3695, 1.3710, 1.3800, 1.3830

Trading Tips

Sell Stop 1.3560. Stop-Loss 1.3710. Take-Profit 1.3500, 1.3450, 1.3350, 1.3255

Buy Stop 1.3710. Stop-Loss 1.3560. Take-Profit 1.3800, 1.3830, 1.3900