Canada’s Industrial Product Price Index rose by 0.7% month-over-month and 2.6% year-over-year. Meanwhile, the Raw Materials Price Index adjusted by 0.3% and 0.8%, respectively, after a –3.2% decline in spring. The acceleration was driven by higher prices for petroleum products (+2.7%), non-ferrous metals (+2.7%), meat and fish (+0.6%), while decreases were seen in motor vehicles (–0.2%), beverages (–0.8%), and fabricated metal products (–0.2%).
The U.S. dollar continues to show mixed dynamics, with USDX holding near 98.60. Later today at 16:00 (GMT+2), Fed Chair Jerome Powell will speak at the annual Jackson Hole Economic Symposium, presenting a report on economic prospects. Investors expect guidance on the outlook for interest rates through year-end. Following recent comments from other Fed officials, expectations for a September rate cut have become less certain. Powell is likely to emphasize upcoming August labor market and inflation data as decisive for future policy moves.
Support and Resistance Levels
On the daily chart, the pair is consolidating above the resistance line of the descending channel with boundaries at 1.3840–1.3400.
Technical indicators are turning upward, strengthening the buy signal: EMA ranges on the Alligator indicator are widening in favor of growth, fast moving averages are above the signal line, and the AO histogram is forming new bullish bars above the zero line.
Support levels: 1.3840, 1.3590.
Resistance levels: 1.3980, 1.4170.
Trading Scenarios
Long positions may be considered after a breakout and consolidation above 1.3980, targeting 1.4170. Stop-loss at 1.3920. Implementation timeframe: 7 days or more.
Short positions may be considered after a decline and consolidation below 1.3840, targeting 1.3590. Stop-loss at 1.3920.
Scenario
- Timeframe: Weekly
- Recommendation: BUY STOP
- Entry Point: 1.3980
- Take Profit: 1.4170
- Stop Loss: 1.3920
- Key Levels: 1.3590, 1.3840, 1.3980, 1.4170
Alternative Scenario
- Recommendation: SELL STOP
- Entry Point: 1.3840
- Take Profit: 1.3590
- Stop Loss: 1.3920
- Key Levels: 1.3590, 1.3840, 1.3980, 1.4170