HomeAnalysis NewsForex Trading: USDCAD Technical Analysis – January 02, 2020

Forex Trading: USDCAD Technical Analysis – January 02, 2020

2 January 2020 By Galina Mikova

After yesterday’s bad fall, the USD take a step in the upward movement and hence it displayed a bullish candle against the CAD on the graph today. The price increase made it more than 1,2900. The price rise followed a significant economic release. Talking about the technical bias, so it still remains bearish due to the lower low wave printed in the graph below during the last downside move.

USDCAD: Technical Analysis

Currently, USDCAD is quoted at a price of 1,2988, however with multiple levels of resistance, meant to limit its movement to the forward direction or the price may pass through it in order to get back to its high position. The closest resistance the price may face is 1.3040, the resistance of the trendline, soon after it there is the Fibonacci level of 1.3049, then a strong horizontal resistance, the pair’s price may experience stands at 1.3166, as exhibited in the graph below.

USDCAD

Moving on the downside, there are also levels of support at different intervals but few in number, that would help the pair’s price stay at the current level and also provide the push for forwarding movement. The price will get its immediate support trendline support at 1.2967, ahead of a psychological number of 1.2950, and then major horizontal support stands at 1.2948, as demonstrated 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.

Trade Idea

While long-term traders may seek their fate, the persistent non-appreciative price behavior does not favor short-term trading investors.