HomeAnalysis NewsForex Trading: USDCAD Technical Analysis – January 21, 2020

Forex Trading: USDCAD Technical Analysis – January 21, 2020

21 January 2020 By Galina Mikova

 

The United States Dollar (USD) is raising its price against the Candian Dollar (CAD) above the 1,3000. Although there is a drop in the price of yesterday, with the green candle label, it is now 10 pips higher than it was yesterday. The USDCAD continually tries its best level, also found from the attached graph, to get back from the bad loss of 31 December 2019 and in this journey, it’s to some extent succeed itself.  Talking about the technical bias, because of the lower high wave printed on the last downside graph, it remains bullish.

USD/CAD: Technical Analysis

On 1.3060, the USDCAD is currently quoted itself. As if we move above the price, then we come across the numbers of resistance that has the function to pull the price toward the drop. At 1.3115, the price might come across the Fibonacci level resistance, afterward, at 1.3217, there is the trendline line resistance and then at the 1.3382, there we observed the key horizontal resistance. luckily, these all resistances are far away from the price so we assumed that they might not disturb price ongoing progress.

USDCAD

The following above graph shows that the price has been supported with the instant three levels of support, including the trendline support of 1.3045, just below the current price, immediately after it, there is the 23.6% Fib level support of 1.3051, and then at very little distance, there is another trendline support of 1.3027.

USD Housing Starts

Fundamentally, The Housing Starts published at the Department on January 17, 2020, by the US Census Bureau is an indicator measuring how many new single-family homes or buildings have been constructed. Every house and each apartment is counted as one housing starting point for the survey. And notably, the number increased from 1.3705 M to 1.608 M.

The estimates include all private and publicly owned entities. We show U.S. housing market trends. Typically, a high reading anticipates favorable (or bullish) for the U.S. dollar, whereas a low reading is perceived as negative (or bearish).

Trade Idea

USDCAD’s behavior as seen in the above-mentioned graph shows that the price tends to continue its ongoing growth process, thus opening it to both short- and long-term traders.