A break of the symmetrical triangle above the 1.2675 level will be a sign of the continuation of the upward movement which could continue up to the 1.2817 level. For this, we must wait for a consolidation above 4/8 of a murray.
On the other hand, the US CPI report will be the catalyst for the Canadian dollar. If the data comes out negative below 0.4%, it could be a signal for the Fed to accelerate its plan to reduce bond purchase. This, in turn, will play a key role that could influence the decision of the monetary policy of the FOMC scheduled for September 20-21.
According to the 4-hour chart, the 21 SMA is located at 1.2660. This is a key level: as long as it remains below the upper line of the symmetric triangle, it could exert some downward pressure and may fall to the lower line of the technical pattern around 1.26.
The sharp breakout below the lower line of the symmetrical triangle and consolidation below the 200 EMA and below the 3/8 Murray will indicate the start of a bearish scenario which could reach the support of 1.2451.
From a technical point of view, if the loonie remains below 1.2660, there is a probability of a downward movement in the next few days. The eagle indicator that measures the volume and strength of the market has fallen below the imaginary line and is showing a bearish signal.
Support and Resistance Levels for September 14 - 15, 2021
Resistance (3) 1.2797
Resistance (2) 1.2736
Resistance (1) 1.2679
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Support (1) 1.2601
Support (2) 1.2573
Support (3) 1.2550
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Trading tip for USD/CAD for September 14 - 15, 2021
Buy above 1.2675 with take profit at 1.2695 and 1.2817 (5/8), stop loss below 1.2630.
Sell below 1.2660 (SMA 21), with take profit at 1.2600 (EMA 200), stop loss above 1.2695.
Buy if there is a rebound at 1.2600 (EMA 200) with take profit at 1.2660 (SMA 21) and 1.2695 (4/8), stop loss below 1.2570.
The material has been provided by InstaForex Company - www.instaforex.com