Forex Trading: USDCAD Technical Analysis – January 06, 2020
The United State Dollar (USD) inched lower on Monday against the Candian Dollar (CAD), a bad phase facing by the USDCAD with continuous bearish candle since November 20, 2019, there is an increase in between this journey but with the minimum effects, today decrease followed by the major economic release and takes the price to less than 1.3000. With regard to the technical bias, it remains bearish due to the lower low move shown in the graph during the last downside move.
USDCAD: Technical Analysis
At times, the USDCAD is being asked at the price of 1.2970, with the quick support of 1.2959, the trendline support, ahead of 12950, a psychological number, then the price may be provided with the horizontal support of 1.2948, as shown in the below graph. all these supports will provide sufficient help to push up the price and also will not favor it from dropping down.
When speaking about the upside, the level of resistance, then found the number of resistance at different intervals, which might not cause price to move forward, in fact, it could push it below this level there is the very quick resistance it might face, at 1.3026, the resistance of the trendline, soon after it is 23.65% Fib level of 1.3051, and then it would have the greatest horizontal resistance of 1.3166.
USD Manufacturing Purchasing Managers Index (PMI)
The Markit Economics ‘ Manufacturing Purchasing Managers Index (PMI) faced a slight decline compared to the last month and also failed to meet the economist’s prediction, making CAD’s currency stronger against the U.S.
Because the manufacturing sector constitutes a significant proportion of total GDP, PMI manufacturing is an important indicator of business conditions and the overall economic situation in the US. Readings over 50 suggest that the economy is expanding, making it recognized by investors as a bullish for the US dollar, and vice versa.
As from the above graph, the pair’s price falling like the stone has been observed since December 02, 2019. Recent price behavior, therefore, does not appreciate short-term trading investors, whereas long-term traders should seek their fate.