Forex Trading: USDCAD Technical Analysis – November 04, 2019
The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Monday, increasing the price of USDCAD to more than 1.3100, after some key economic news released. The technical bias may stay bearish because of the price printed a lower low in the recent downside move.
USD/CAD Technical Analysis
Currently, the pair is being traded around 1.3143, A resistance can be noted around 1.3173, the 38.2% Fib level ahead of a trendline resistance which may come around 1.3312, and then 1.3423, the significant horizontal resistance is likely to resist the price from increasing above this level as shown in the graph given below.
Moving to the downside, the support can be noted close to 1.3114, the 23.6% Fib level, ahead of 1.3052, trendline support and then 1.3015, the key horizontal support may prevent the price of the pair from falling below the said level as shown in the graph given above. The technical bias may remain bearish provided that the closest significant horizontal resistance 1.3173 stays intact.
USD Average Hourly Earnings
From a fundamental standpoint, the figure concerning Average Hourly Earnings remains 0.2 percent this month, as compared to 0.0 percent, down beating the economist expectation which was 0.3 percent. The data comes from the news published by the U.S. Labor Statistics Bureau.
The Average Hourly Earning released by the US Bureau of Labor Statistics is a significant indicator of labor cost inflation and of the tightness of labor markets. The Federal Reserve Board pays close attention to when setting interest rates. A high reading is also positive for the USD, while a low reading is negative.
Considering the general behavior of pair movement over the past few days, selling the USDCAD around current levels can be a decent choice in the short to medium term.