Relevance up to 12:00 2022-06-11 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Today, from 12:30 to 14:00 (GMT), a significant increase in volatility is expected in USD, CAD quotes and, accordingly, in the USD/CAD pair.
Meanwhile, the price is trying to break through the zone of strong resistance levels 1.2675 (200 EMA on the daily chart), 1.2715 (200 EMA on the 4-hour chart, 50 EMA on the daily chart), and 1.2740 (38.2% Fibonacci retracement of the downward correction in the USD/CAD growth wave from the level 0.9700 to the level of 1.4600).
The dollar is rising against European currencies and falling against the yen and two other (except CAD) major commodity currencies (NZD, AUD), which indicates a certain dissonance in its dynamics.
From a technical point of view, from the level of 1.2740, where USD/CAD is currently located, a rebound is possible and a return to the zone below the key support level 1.2675 with the targets of further reduction at the support levels 1.2628 (200 EMA on the 1-hour chart), 1.2540 (200 EMA on the monthly chart ), and 1.2520 (local support level).
Their breakdown will increase the risks of a further decline in USD/CAD and a resumption of the global downward trend.
In an alternative scenario, USD/CAD will still break through the resistance at 1.2740 and continue to grow towards the key resistance level 1.2840 (200 EMA on the weekly chart). After that, the nearest growth targets will be the local resistance levels 1.2900, 1.3070, and the mark of 1.3100, through which the upper limit of the rising channel passes on the weekly chart.
Support levels: 1.2715, 1.2675, 1.2628, 1.2600, 1.2540, 1.2520, 1.2460, 1.2400, 1.2290, 1.2165, 1.2010, 1.2000
Resistance levels: 1.2740, 1.2800, 1.2840, 1.2900, 1.2960, 1.3000, 1.3070, 1.3100
Sell Stop 1.2690. Stop-Loss 1.2760. Take-Profit 1.2675, 1.2628, 1.2600, 1.2540, 1.2520, 1.2460, 1.2400, 1.2290, 1.2165, 1.2010, 1.2000
Buy Stop 1.2760. Stop-Loss 1.2690. Take-Profit 1.2800, 1.2840, 1.2900, 1.2960, 1.3000, 1.3070, 1.3100