USDCAD continues lower for the second day in a row despite the fact that the US Durable Goods Orders increased unexpectedly in February. Durable Goods Orders increased by 1.2%, or $2.9 billion, to $249.4 billion, in February. The figure beat the market expectations of 0.8% while January’s figure revised up to -0.1% from -0.2%.
Taking out transportation, the new orders decreased by 0.6%, while excluding defence, the new orders increased 0.1%. In other economic data, the Housing Price Index came in at 0.3% in line with forecasts in January.
The USDCAD ignored the positive durable goods order data, and the pressure resumed mostly due to technical factors as the pair exiting the overbought area. Loonie also helped by the Fed liquidity injections and the fiscal stimulus as investors shift their attention from the USD as safe-haven. The crude oil price drop also ignored today; crude oil price is 3.62% at $23.41 per barrel.
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USDCAD Technical Analysis
The USDCAD is 1.02% lower at 1.4315 close to daily lows as the selling pressure fr US dollar accelerates across the board. The technical picture despite the two day’s correction is still bullish for the pair, and only a close below 1.41 might cancel the upward trend.
On the upside, the first support for USDCAD stands at 1.4296 the daily low. If the USDCAD pair breaks below, the next support level will be met at 1.4150 the low from March 20. In case of a break lower, the next support will be reached at 1.3960 the low of the March 17 trading session.
On the other side, immediate resistance for the pair stands at 1.4482 the daily high. If the pair breaks above, the next hurdle will be met at 1.4535 the high from yesterday’s trading session. The high from March 19th at 1.4665, would provide the next supply zone.