HomeAnalysis NewsForex Trading: USDCAD Technical Analysis – January 24, 2020

Forex Trading: USDCAD Technical Analysis – January 24, 2020

24 January 2020 By Galina Mikova

Today, with a rise of more than 1,3100, the US Dollar (USD) has inched higher against the Canadian Dollar (CAD). Nowadays the graph portrays the growth of the USDCAD, this is the pair’s recovery period, which happened immediately from the beginning of the month. US Positive news is responsible for the progress of today. Talking about the technical bias, because of the lower high wave printed on the last downside graph, it remains bullish.

USD/CAD: Technical Analysis

At the price of 1.3136, currently, the USDCAD quoted itself. The price is fully backed up from the backing and also gets the high power support to take the price above this level as shown in the figure below. At 1.3116, there is the Fib level support of 32.8%, afterward, there is the confluence of trendline and key horizontal support of 1.3053, and then at the 1.3006, it is assisted by another trendline.

USDCAD

On the other hand, the graph above also includes the resistance levels that may escalate the price towards the downside. At first, there is a major horizontal resistance of 1.3166, ahead of it, there is the 61.2% Fib level resistance of 1.3218, and then at a little distance, the pair’s price may face the trendline resistance of 1.3285.

USD Initial Jobless Claims

Initial Jobless Claims reported by the U.S. Department of Labor this month rose by 06 points compared with the month before. This provides a measure of labor market power. A greater than expected number indicates weakness in this sector which influences the US economy’s strength and direction and vice versa.

Trade Idea

Given the price moves of the pair over the last couple of days, it may be a good idea to make the investment for both short- and long-term positions at present levels.