USDCAD Breaks Above 1.30 Ahead of ISM Non-Manufacturing PMI

USDCAD rebounds strongly today adding 0.30% at 1.3002 as the USD recovers across the board helped by better fundamental data from the U.S.  The U.S. trade deficit declined by $3.9 billion in November. The services and goods deficit dropped to $43.1 billion in November from $46.9 billion in October. The United States Redbook Index (month over month) came in at -2.6% on January 3 from previous -2.8%.

From Canada the International trade deficit narrowed to $1.1 billion in November beating forecasts of 1.15 billion the previous reading was $1.6 billion in October.

The crude oil price retreats today from three-month highs giving up 1% at $62.64 adding extra pressure to Canadian Dollar.

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USDCAD Technical Analysis Levels

USDCAD makes a strong rebound today from two-month lows and managed to break above the 1.30 mark. Bulls are trying to take a breath after the severe selling pressure the last two weeks.

What can add credibility to today’s upside move is if the pair manages to settle above the daily high at 1.3015. That might attact nore bid to join the action for the next target which stands at 1.3066 the high from December 31st session. A move above might challenge the 50-day moving average at 1.3176.

On the downside, first support for the pair stands at 1.2956 the daily low. If the USDCAD pierce that support level the next target to the downside is at 1.the low from October 14th 2018.

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