Forex Trading: USDCAD Technical Analysis – Febuary 06, 2020
Through running the very smooth forward drive, the United States Dollar (USD) today dropped at a price below 1,3300 against the Canadian Dollar (CAD), luckily, this fall does not affect the currency rate as such, but may disrupt its smooth journey. The negative trade balance study from yesterday is perceived to be a USDCAD slowdown. So far as the technical bias is considered, it could remain bullish because of the lower high wave printed in the graph in the last downside movements.
USD/CAD: Technical Analysis
Today, at a price of 1,3274, the USDCAD asked, Blessed to claim there are many support levels that will soon surpass the above-mentioned levels of resistance and raise the price to the desired peak. At first, on 1.3195, there is the support of the Fibonacci level, afterward, at 1.3098, there is the support of trendline, and then at 1.3044, we observed the major horizontal support.
Though the price has the levels of resistance that might not permit the price beyond this level it is the trendline resistance at 1.3289, ahead of 1.3300 the psychological number, and then at 1.3347, the main horizontal resistance stood, as shown in the above graph.
US Trade Balance
Yesterday the Trade Balance released at $-48.9 B. It is a balance between exports and the overall goods and services that are imported. This reading is far below last month’s reading and it also surpasses economist’s forecast.
A negative value indicates a trade deficit, an occurrence that causes some USD uncertainty. If there is no market for US exports, that would translate into negative growth in the balance of trade and would be adverse for the US dollar.
It might be appropriate to put some investment into USDCAD at this point, as there are support levels at the back of the price that gives the strength to price to rise above and hit the top.