Forex Trading: USDCAD Technical Analysis – May 07, 2019

The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Tuesday, increasing the price of USDCAD to more than 1.3500 following some key economic releases. The technical bias may remain bullish because of the lower high in the recent downside move.

USD/CAD Technical Analysis

As of this writing, the pair is being traded around 1.3450, resistance can be noted around 1.3504, the trendline resistance ahead of 1.3600, the psychological number and then 1.3664, the major horizontal resistance as demonstrated in the given below chart.

USDCAD

 

On the downside, A support can be noted near 1.3366, the key horizontal support level ahead 1.3295,  the 38.2%  Fib level support level and then 1.3251, the confluence of two trendline support levels as demonstrated in the given above chart. The technical bias shall remain bullish as long as 1.3366, the major horizontal support level remains intact.

USD Labor Force Participation Rate

In the United States, the figure concerning labor force participation rate remained 63.0 in March, as compared to 63.2 during the month before, up beating the economist expectation which was 62.9. The data is copied from the news released by the Bureau of Labor Statistics Department of Labor, United States.

The data is derived after taking into account the age factor of labors including both working and those who are still looking for a job. It is presented in percentage of the total number of people either being employed or unemployed.  Generally speaking a high reading in this regard is considered as a bullish trend for the US Dollar (USD) and vice versa.

Trade Idea

Considering the overall price behavior of the pair over the last couple of days, selling the USDCAD around current levels can be a good decision in short to medium term.

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