empty
05.08.2022 02:58 PM
USD/CAD Technical Analysis and Trading Tips for August 5, 2022

This image is no longer relevant

Today, the focus of investors' attention will be on the US Department of Labor's monthly labor market report at 12:30 (GMT) and Statistics Canada's report on the Canadian labor market.

This image is no longer relevant

In one of my previous reviews, I noted that the annual consumer price index (CPI) rose in May to +7.7%, the highest level in 39 years, and in June exceeded this level, reaching 8.1%. At the same time, unemployment is also expected to rise in July to 5.1% (previously at 4.9%). The deterioration of the situation on the labor market will significantly exacerbate the Bank of Canada's problem of curbing rising inflation while the labor market and the country's economy are slowing down.

This image is no longer relevant

From a technical point of view, USD/CAD is in the bull market zone, above the key support levels 1.2850 (200 EMA on the weekly chart), 1.2785 (144 EMA on the daily chart), 1.2755 (200 EMA on the daily chart).

Today's publication at 12:30 (GMT) may become a driver for further growth if the data for the US turns out to be positive and for Canada—negative.

This image is no longer relevant

The breakdown of the local resistance level of 1.2890 will be a confirmation signal for new long positions in USD/CAD.

In an alternative scenario, and after the breakdown of support levels 1.2857 (200 EMA on the 1-hour chart), 1.2845 (local support level), USD/CAD will head towards key support levels 1.2755, 1.2740 (38.2% Fibonacci retracement of the downward correction in the USD/ CAD from 0.9700 to 1.4600). Their breakdown will return USD/CAD to the bear market zone.

Support levels: 1.2870, 1.2857, 1.2845, 1.2800, 1.2785, 1.2755, 1.2740, 1.2700, 1.2550, 1.2520

Resistance levels: 1.2890, 1.2960, 1.3000, 1.3070, 1.3100, 1.3223

Trading Tips

Sell Stop 1.2860. Stop-Loss 1.2910. Take-Profit 1.2845, 1.2800, 1.2785, 1.2755, 1.2740, 1.2700, 1.2550, 1.2520

Buy Stop 1.2910. Stop-Loss 1.2860. Take-Profit 1.2960, 1.3000, 1.3070, 1.3100, 1.3223

Jurij Tolin,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD: Trading Plan for the U.S. Session on June 6th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.3544 level and planned to make market entry decisions based on it. Let's look at the 5-minute chart and see what happened

Miroslaw Bawulski 15:38 2025-06-06 UTC+2

EUR/USD: Trading Plan for the U.S. Session on June 6th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.1407 level and planned to make market entry decisions based on it. Let's look at the 5-minute chart and see what happened. There

Miroslaw Bawulski 15:36 2025-06-06 UTC+2

How to Trade the GBP/USD Currency Pair on June 6th? Simple Tips and Trade Analysis for Beginners

Thursday Trade Analysis: GBP/USD 1H Chart. The GBP/USD pair continued its upward movement on Thursday, despite having even fewer reasons for it than the EUR/USD pair. There was no news

Paolo Greco 09:57 2025-06-06 UTC+2

How to Trade the EUR/USD Currency Pair on June 6th? Simple Tips and Trade Analysis for Beginners

The EUR/USD currency pair continued its upward movement on Thursday, in line with the current trend. There were no reasons for a new "rally" of the European currency. The only

Paolo Greco 09:51 2025-06-06 UTC+2

Trading Recommendations and Trade Analysis for GBP/USD on June 6, 2025

The GBP/USD currency pair continued its upward movement on Thursday, even though once again there were no apparent reasons for it. The British pound keeps rising practically on any occasion

Paolo Greco 04:43 2025-06-06 UTC+2

Trading Recommendations and Trade Analysis for EUR/USD on June 6, 2025

The EUR/USD currency pair continued trading with gains on Thursday. Not even the latest monetary policy easing by the ECB could save the dollar. Yesterday, the European regulator decided

Paolo Greco 04:26 2025-06-06 UTC+2

GBP/USD: Trading Plan for the U.S. Session on June 5th (Review of Morning Trades)

In my morning forecast, I focused on the 1.3562 level and planned to make market entry decisions around it. Let's look at the 5-minute chart and see what happened. Growth

Miroslaw Bawulski 19:46 2025-06-05 UTC+2

EUR/USD: Trading Plan for the U.S. Session on June 5th (Review of Morning Trades)

In my morning forecast, I focused on the 1.1407 level and planned to make market entry decisions around it. Let's look at the 5-minute chart and analyze what happened

Miroslaw Bawulski 19:39 2025-06-05 UTC+2

How to Trade the GBP/USD Pair on June 5? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades 1H Chart of GBP/USD The GBP/USD pair continued its upward movement on Wednesday, following the new trend. Recall that the price had settled below the previous

Paolo Greco 06:39 2025-06-05 UTC+2

How to Trade the EUR/USD Pair on June 5? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades 1H Chart of EUR/USD On Wednesday, the EUR/USD currency pair traded with low volatility and an upward bias. We anticipated that the macroeconomic background would

Paolo Greco 06:39 2025-06-05 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.