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USDCAD at Two Month Highs on Upbeat Services PMI


USDCAD trades 0.13% higher at 1.3292 making fresh two-month highs after the ADP Employment rose by 291K more than the market expectations of 156K. USD is also helped by an improvement in U.S. Services PMI which came in at 53.4, beating the market expectations of 53.2 in January. The Composite PMI came improved at 53.3 in January from 52.7 the previous month.

The U.S. ISM Non-Manufacturing PMI came in at 55.5 topping the expectations of 55 in January. The Business activity came in at 60.9 versus the 57.0 prior reading. The Employment was at 53.1 versus 55.2 last month, while the New orders registered at 56.2 versus 54.9 the prior month.

On the other side of the forex equation, the Canada Exports came in at $49.32B below the   market expectations of $50.1B in December. The Imports came in at $49.69B also below the expectations of $50.3B.

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USDCAD Resistance and Support

The USDCAD pair hits two-months high as the US dollar taking advantage from stronger fundamental data while the Canadian dollar is pressured by lower crude oil prices. The pair is in bullish path making higher highs and higher lows.

On the upside, first resistance for USDCAD pair stands at 1.3302 the daily top. Next resistance will be met at 1.3320 the high from December 3rd. A break above will pave the way for a move up to 1.3348 the top from October 3rd 2019.

On the other side, initial support for the pair stands at 1.3262 the daily low. If the USDCAD breaks below that level, the next support will be met at 1.3227 the 200-day moving average.  More bids might emerge at 1.3180 the 100-day moving average.

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