USDCAD Higher After Better US Economic Data

USDCAD trades higher for the fifth consecutive session as the pairs rebound from the 200-day moving average continues. Rising fears of a second wave of new coronavirus infections have boosted USD as a safe haven asset while investors dump riskier assets. Canadian Loonie also pressured by the Fitch Ratings Canada’s downgrade to ‘AA+’ from ‘AAA’ the previous week.

On the data front, the Dallas Fed Manufacturing Index recovered to -6.1 in June well above the expectations of -59. The U.S. Pending Home Sales came in at 44.3%, beating the forecasts of 19.7% in May. The yearly figures for Pending Home Sales came in at -5.1%, also above the expectations of -44.6%.

From Canada, the Industrial Product Price came in at 1.2% in line with expectations for May, while the Canada Raw Materials Price Index increased by 16.4%. The Building Permits registered up to 20.2% from previous -17.1% in May.

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USDCAD Price Daily Analysis

The USDCAD is 0.03% higher at 1.3684 as the positive momentum drive the pair close to two-week highs. The technical picture for USDCAD has improved for the short term as the price holds above the 200-day moving average, but bulls need to return above the 100-day moving average to attract fresh bids. 

On the downside, the immediate support for USDCAD stands at 1.3646 the daily low. If the pair breaks below 1.3646, the next support area will be met at 1.3606 the low from June 25 trading session. The next target for sellers would be at 1.3528 the low from June 24. 

On the contrary, the initial resistance for USDCAD stands at 1.3699 the daily top. If USDCAD moves higher, the next hurdle will be met at 1.3796 the 100-day moving average. The next resistance zone for the pair is at 1.3395 the low from June 11. 

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