Forex Trading: USDCAD Technical Analysis – November 22, 2019
It was not a good start for the US Dollar (USD) today since it decreases against the Canadian Dollar (CAD) with a price marked lower than 1.3300. The price decrease amid an unfavorable economic release. Talking about the technical bias it might remain bullish because of the lower high wave printed on the graph during the last downside move.
USDCAD: Technical Analysis
As of this writing, the USDCAD is being exchanged around 1.3280, with a series of support levels coming ahead. At first, the price may receive support around 1.3242, the key horizontal support which may prevent the price from falling below this level. Then the 61.8% Fib level seems to be supporting the price around 1.3155, ahead of 1.3082, the trend line support so that the price may not decrease further as shown in the graph below.
On the other side, a resistance level may restrict the price around 1.3295, it’s an immediate Fibonacci level which may also serve as a key horizontal resistance making it difficult for the price to pass through. Then comes a 1.3325, the trend line resistance before it meets another resistance level around 1.3382, which is the high of September 03, 2019 as shown in the graph above.
USD Monthly Budget Statement
The Monthly Budget Statement released this month by the Financial Management Service fell sharply from $84 B to -$134 B. The Monthly Budget Sentiment outlines the financial activities of federal agencies, disbursement officers, and Federal Reserve banks, as this negative statistic (deficit) indicates government debt and points to the bearish trend.
Since the technical bias seems to remain bullish, therefore, trading the pair around current levels for both short term and long term positions may not be a bad idea.
Tip: Even though technical analysis and fundamental analysis is essential for fruitful trading but choosing the right broker also matters.