Forex Trading: USDCAD Technical Analysis – December 20, 2019
The U.S dollar (CAD) moved higher on Friday against the Candian dollar, after experiencing the fall since the earlier days of the week, gradually the USD dollar started to recover itself and its price has risen to more than 1.3100. The price increase follows the major release of the economy. In the last few days, given the price behavior of the pair, the lower low wave was printed during the last downside move so technical bias remains bearish.
USDCAD: Technical Analysis
As of now, the price of the USDCAD is 1.3137. This price faces the numbers of resistance in a further upward movement that could restrict it. The key resistance met by the price at 1.3170, is the strongest horizontal resistance, ahead of 1.3250, the Fibonacci level, then at 1.3303, the price experienced another resistance, the confluence of two trendlines resistance, as demonstrated in the graph below.
On the other side, the price may also receive the different levels of support, including the first 1.3103 support, the trend line support, then the 1.3000 psychological number, then the main support of 1.3040, the major horizontal support. All of these levels of support help to sustain the price at the current level.
USD Building Permit
The building permits issued by the U.S. Census Bureau rose sharply from 1,461 M to 1,484 M, this Department of Commerce shows the number of permits for new construction projects, according to recorded statics of yesterday. This includes corporate investment (US economic development) movement. The high number tends to cause the US economy to be somewhat optimistic.
Although the pair’s price faces a bearish trend, there is a possibility that the pair’s price may soon be stabilized, trading around the current level is may be a wise decision for a long position holder, whereas a short position holder should also try their luck instead of avoiding it.