To strengthen the US dollar

Since the beginning of the week, the USD/CAD pair has been growing. The growth in pair started amid statements made by the Bank of Canada Governor Stephen Poloz on Monday.
Today in the afternoon, a series of macroeconomic indicators are released in the US and Canada. The US trade deficit is   widen  to $47.06 billion. On the other hand, the pair can get support if Canada posts a bigger trade deficit than in the previous month. Moreover, favorable data on ISM Non-Manufacturing PMI can strengthen the US dollar

Bollinger Bands on the daily chart is directed down. The pair is trading between the lower and the middle MAs of the indicator. MACD histogram is in the negative zone. Stochastic is moving up in the middle of its range.
It is recommended to wait for clearer trading signals.
Support levels: 1.3000, 1.2904, 1.2855.
Resistance levels: 1.3121, 1.3278, 1.3343, 1.3583

Window for USD strength

Based on other wage indicators, the previous month’s reading of 2.2% looked low compared to the trend in other datasets (more like 2.5%). With that in mind, there is the potential for some more encouraging wage growth figures over the next few months, as pent-up demand in the labour market starts to translate into more rapid pay rises.

After a couple of mixed US labour reports, today’s data was fairly encouraging. Wage growth provided a pleasant surprise to markets, coming in at 0.3% MoM vs 0.2% expectations and taking the year-on-year change up to 2.3%. The rest of the report was fairly in line with expectations - Non-farm payrolls came in a touch above consensus at 215k, roughly around what we believe to be the current underlying trend (around 200k). The unemployment rate ticked back up to 5%, in line with our forecast, although not because of a correction in the household survey measure of employment.