The US Dollar (USD) plunged down against the Candian Dollar (CAD) on Thursday with a price decrease of less than 1.3200. The price decreases after a piece of major economic news broke. Considering the last upside move printed on the graph, the higher low suggests that the technical bias may remain bearish.
USDCAD: Technical Analysis
As of this writing, the USDCAD is being asked for the price near 1.3185. Since the price dropped drastically, a support may be seen around 1.3158, the major horizontal support which is likely to help the price to sustain around current level ahead of 1.3113, the Fib level support and then comes 1.3042, the low of October 29, 2019, as shown in the graph below.
Talking about the resistance levels, the price may face resistance 1.3223, it’s an immediate 61.8% Fib level ahead of 1.3299, the trend line resistance and then 1.3347, the major horizontal resistance levels. All of the levels mentioned above may act as strong resistance pushing the price back towards the downside as shown in the graph above.
CAD Current Account
The current account, which has been adversely influencing the Canadian Dollar for the last three days, was published by Statistics Canada and drops from -6.74 B to -9.84 B, according to the recorded figure.
The current account is a net stream of current transactions into and out of Canada, including products, services, and interest payments. A current account surplus shows that the flow of capital into Canada exceeds the reduction of capital. A high reading is considered positive (or bullish) for the CAD, while a low reading is considered negative (or bearish).
It can be a good decision to trade USDCAD over a short period of time. Nonetheless, the chances are excellent for traders looking to trade the pair for a long-term position as the pair is heading towards the bullish trend.