Forex Trading: USDCAD Technical Analysis – March 03, 2020

From yesterday’s a really poor drop, today morning with the green candle tag the US Dollar luckily inched higher with a price of more than 1,3300 against the Canadian Dollar. Although this rise may not be enough to cover up the dropped yesterday, if we look at the USDCAD’s journey then it has observed that the upward push has begun since the last week of the previous one, now with the help of multiple support level as shown in the graph below, the price has tendency to cover up its losses soon. The reason for today’s rise is the increased nondefense capital goods of the United States. As long the technical bias is concerned, then it might remain bullish due to the lower high wave imprinted in the last downside move of the graph.

USD/CAD: Technical Analysis

The USDCAD is currently priced at 1.3344. The price may be impacted by very few levels of resistance that could conflict with its upward growth firstly, the trendline resistance might hit it at 1.3461 luckily is far from price, afterward the psychological number at 1.3500 and then the strongest horizontal resistance at 1.3544.

USDCAD

Fortunately, with the support levels on the downside of the price, the USDCAD has secured itself from the further dropping, as they work to protect the price, the immediately the Fibonacci level supported the price at 1.3330, ahead of the combination of the trendline and the 38.2% Fib level at 1.3268, then the major horizontal assisted the price at 1.3207.

US Nondefense Capital Goods Orders Except Aircraft

The Nondefense Capital Goods Orders Except Aircraft, published by the U.S. Census Bureau, increased from the last index of -0.5 percent to 1.1 percent, calculating the cost of orders received by suppliers for capital goods, meaning goods intended to last for three years or more, except defense and aircraft sectors.

A high reading is usually bullish for the USD, whereas a low reading is seen as Bearish.

Trade Idea

The USDCAD opens the business opportunities for both short- and medium-term traders and provides good incentives for profit-seeking.

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