Forex Trading: USDCAD Technical Analysis – January 16, 2020
Since January 09, 2020, the U.S. Dollar (USD) restricts its growth to the same level and the price fluctuates continuously at one point, today’s price below 1,3100 brings a decline in USD currency against CAD with the red mark on the graph. Because the lower low wave in the graph is shown in the last downside move the technical bias remains bearish.
USD/CAD: Technical Analysis
The current price, at which USDCAD is being quoted is 1.3037, the graph below shows the support levels after the price that works to assist the price in order to take it above the said level and also help it, to cross the barriers of resistance levels. the first support is provided at the point of 1.3025, the Fib level of 23.6%, ahead of 1.3000, a psychological number, then at the 1.2928, it may be provided with the support of a major horizontal level.
On the upper side, it has been noticed that that price has the pressure of many resistance levels that might make it hard for the price to move above the current level or it is also the possibility that these levels bring the price below this level. At first, the above graph reflected, the confluence of two trend lines of 1.3054, just above the said level, afterward, there is the 38.2% Fib level of 1.3093and then soon after this, a major horizontal level stands at 1.3116.
USD Producer Price Index ex Food & Energy
The Producer Price Index ex Food & Energy published by the Bureau of Labor Statistics, Department of Labor calculates the average price increases in US primary markets by commodity producers in all manufacturing states decreased from 1.3% to 1.1% this month.
A high reading is usually seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish).
Trading the USDCAD for both short-term and long-term positions at present levels might not function since the technical bias is expected to remain bearish for a while.