It was a good start for the U.S. dollar as it again inched higher against the Canadian. dollar, it’s the third day that the pair’s price is constantly rising itself, owing to the major release in the U.S. economy, the price increased by more of 1.3000. As far as technical bias is considered, the lower low wave, printed on the last downside movement, so it remains bearish.
USDCAD: Technical Analysis
Currently, USDCAD is traded at a price of 1,3154, but with multiple levels of resistance, designed to limit its forward movement or the price may pass through it in order to return to its high position of October 06, 2019. The nearest resistance the price may face is at 1.3170, the level of Fibonacci, ahead of 13303, the confluence of two trendlines resistance, then a major horizontal resistance, the pair’s price experience stands at 1.3381, as exhibited in the graph below.
On the downside, there are also levels of support at different intervals that would help the pair’s price stay at the current level and also provide the push for forwarding movement. The price will get its immediate support of 23.6 percent fib level at 1.3121, immediately after it there is a support at 1.3107, trendline support and then another trendline support level at 1.3071, as demonstrated in the graph above.
US Initial Jobless Claims
The Initial Jobless Claims released today on December 26, 2019, is down from the figure reported last month. It is a measure of the number of people applying for state unemployment insurance for the first time, or it is a measure of labor market power. A lower than expected number shows competition in this sector that affects the US economy’s output.
Although, the USDCAD is facing volatility in price movement. But it will soon achieve the appropriate destination position, so investing in USDCAD will benefit both short-term and long-term traders.