Forex Trading: USDCAD Technical Analysis – October 28, 2019
The US Dollar (USD) inched low against the Canadian Dollar (CAD) on Monday, decreasing the price of USDCAD to less than 1.3100, after some key economic news released. The technical inclination may stay bearish in light of the lower low in the recent downside move.
USD/CAD Technical Analysis
At the present, the pair is being traded around 1.3058, the trendline support which shields it from backing can be noted close to 1.3052, ahead of 1.3000, the psychological number and afterward at 1.2989, the key horizontal support as exhibited in the given below the graph.
Moving to the upside, A resistance stays at the 23.6% Fib level, can be noted around 1.3144, sometime later trendline resistance of 1.3250 comes, and afterward 1.3289, the significant horizontal resistance which likely shields the price from moving further, as showed up in the given above graph. The technical bias may remain bearish because of the closest significant horizontal resistance of 1.3122 stays intact.
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, selling the USDCAD around current levels can be a decent choice in the short to medium term.