The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Monday, increasing the price of USDCAD to more than 1.3200, after some key economic news released. The technical bias may stay bearish because of the price printed a higher low in the recent upside move.
USD/CAD Technical Analysis
Currently, the pair is being traded around 1.3222, A resistance can be noted around 1.3272, the 61.8% Fib level, ahead of a trendline resistance which may come around 1.3308, 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 1.3174, the 38.2% Fib level, ahead of 1.3054, 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 1.3174 stays intact.
USD Unit Labour Cost
From a fundamental standpoint, the figure concerning Unit Labour Cost remains 3.6 percent this month, as compared to 2.4 percent the month before, down beating the economist expectation which was 2.2 percent. The data comes from the news published by the U.S. Labor Statistics Bureau.
The Unit Labor Cost shows a total cost to hire a workforce. It can act as a measure of the cost of production, share prices, and inflation rates. For the USD, a high reading is viewed as positive (or bullish), while a low reading is viewed as negative or bearish.
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.