The dollar index is falling on Tuesday. Although, it is worth noting that this decline does not look significant, and there are no special prerequisites for this, except that market participants are already beginning to prepare for the publication on Friday by the US Department of Labor of the monthly report with data on the state of the US labor market for November.
As we noted in today’s “Fundamental Analysis“, in general, the upward dynamics prevails, and the breakdown of the zone of important resistance levels 1.3460, 1.3450 (Fibonacci level 23.6% of the downward correction in the growth wave USD/CAD from the level of 0.9700 to the level of 1.4600) will give the pair a new upward impulse, sending it towards the nearest target – the local resistance level 1.3570, and after its breakdown – further towards the upper border of the rising channel on the weekly chart and the marks 1.3900, 1.4000.
Of the news for today, which can sharply increase the volatility of the pair, one should pay attention to the publication at 13:30 of the report of the Statistical Service of Canada with data on the country’s GDP and the Conference Board report on the level of US consumer confidence for November. The previous value of the indicator is 102.5. An increase in the indicator will strengthen the USD, and a decrease in the value will weaken the US dollar (for the events of this week, see the Most Important Economic Events of the Week 11/28/2022 – 12/04/2022). On the whole, as we noted above, the upward dynamics of the USD/CAD remains.
Support levels: 1.3409, 1.3398, 1.3220, 1.3120, 1.3080
Resistance levels: 1.3450, 1.3460, 1.3570, 1.3600, 1.3640, 1.3685, 1.3800, 1.3830, 1.3900, 1.3977, 1.4000