USD/CAD Forecast — US Dollar Trading In Range Vs Canadian Dollar
- - The US Dollar struggled to move above 1.2900–1.2910 against the Canadian Dollar, and declined.
- - There is a connecting bullish trend line forming with support at 1.2835 on the hourly chart of USD/CAD.
- - Recently in Canada, the Ivey PMI for April 2018 was released by the Richard Ivey School of Business.
- - The outcome was above the forecast of 60.2 as there was a sharp rise in the PMI to 71.5 (s.a.).
Canada’s Ivey PMI
Recently in Canada, the Ivey PMI for April 2018 was released by the Richard Ivey School of Business. The market was positioned for a rise from the last reading of 59.8 to 60.2.
However, the actual result was above the forecast of 60.2 as there was a sharp rise in the PMI to 71.5 (s.a.). The employment index came in at 57.0, inventories index at 52.4 and Prices index at 67.8.
The USD/CAD pair remained confined in a range above the 1.2800 support and it seems like it is preparing for the next move.
USD/CAD Technical Analysis
The US dollar made a few attempts to break the 1.2910–20 resistance area against the Canadian Dollar. The USD/CAD pair failed to settle above 1.2910 and started a downside move from the 1.2917 swing high.
The pair declined and traded below the 1.2880 support level, but the decline was protected by the 1.2840 support. There is also a connecting bullish trend line forming with support at 1.2835 on the hourly chart of USD/CAD.
The pair may correct higher in the short term above the 23.6% Fib retracement level of the last decline from the 1.2917 high to 1.2839 low. However, the broad picture suggests that the pair is trading in a wide range above the 1.2800 support.
On the downside, supports are at 1.2840, 1.2820 and 1.2800. On the flip side, resistances are at 1.2900, 1.2910 and 1.2920. A break on either end above 1.2920 or below 1.2800 could open the doors for the next move in the near term. The current price action is slightly bearish, suggesting a chance of a dip towards the 1.2800 support zone.
Originally published at ForexGator.com.