Forex Trading: USDCAD Technical Analysis – October 21, 2019
The US Dollar (USD) inched high against the Canadian Dollar (CAD) on Monday, increasing the price of USDCAD to more 1.3100 after some key economic news released. The technical inclination may stay bearish in light of the higher low in the recent upside move.
USD/CAD Technical Analysis
At the present, the pair is being traded around 1.3133, An immediate resistance stays at the 23.6% Fib level, can be noted around 1.3145, sometime later trendline resistance of 1.3188 comes, and afterward 1.3289, the significant horizontal resistance which likely shields the price from moving further, as showed up in the given underneath graph.
Moving to the downside, the trendline support which shields it from backing can be noted close to 1.3128, ahead of 1.3100, the psychological number and afterward at 1.3089, the key horizontal support as exhibited in the given above graph. The technical bias may remain bearish because of the closest significant horizontal resistance of 1.3145 stays impeccable.
USD Capacity Utilization
In the United States, the figure concerning capacity utilization fell to 77.5% this month, less than the month before figure i.e. 77.9%, down beating the economist expectation which was 77.6% The data is copied from the news released by Federal Reserve Board.
The Capacity Utilization is the level of the US creation limit which is really utilized over the brief span time frame. It is demonstrative of by and large development and request in the U.S. economy. A high limit usage animates inflationary weights. As a rule, a high perusing is viewed as positive (or bullish) for the USD, while a low perusing is viewed as negative (or Bearish).
Considering the general behavior of pair movement in the course of the most recent few days, purchasing the USDCAD around current levels can be a decent choice in the short to medium term.