Forex Trading: USDCAD Technical Analysis – December 31, 2019
The US Dollar keeps sinking against the Canadian Dollar for the last couple of days, the same happened today as well. The price went lower than 1.3100, after an unfavorable major economic release. The technical bias might also remain bearish because of the higher low in the recent upside move.
USDCAD: Technical Analysis
As of this writing, the USDCAD is being quoted for the price near 1.3049, with a lot of resistance levels coming ahead. Since the price is decreasing, let’s talk about the support levels which might help the price to sustain or prevent it from decreasing below the current levels. While zooming out the graph, we may be able to see a trend line support level near 1.2952, the trend line support level ahead of 1.2800, the psychological number and then comes the major horizontal support level near 1.2727, which may act as a strong support level as shown in the graph below.
On the other hand, the price may hit a resistance level near 1.3196, the key horizontal resistance level. As the price moves upside, another strong resistance level might resist the price around 1.3306, it’s a confluence of a trend line and a horizontal resistance level before it hits 1.3443, the 23.6% Fib level resistance which may make it difficult for the price to pass through the said level as shown in the graph above.
USD Nondefense Capital Goods Orders Excluding Aircraft
The Nondefense Capital Goods Orders Excluding Aircraft, published by the U.S. Census Bureau, had a surprising effect on the falling price of the U.S. dollar as it dropped sharply from 1.1% to just 0.1%. The cost of orders obtained by manufacturers for capital goods (capital goods are durable goods used in the production of goods or services) is measured.
Recent price behavior does not appreciate short-term trading investors, while long-term traders should seek their destiny.