USDCAD Holds Gains Despite US Manufacturing PMI Slump to 47.8
USDCAD trades 0.22% higher at 1.3266 despite worse than expected ISM Manufacturing PMI; the figure came in at 47.8 below expectations of 50.10. USDCAD boosted earlier by worse than expected GDP data; the Canada Gross Domestic Product (month over month) came in at 0% below expectations of 0.1% in July. USDCAD on the news gave up 20 pips but still holds the daily gains.
Crude oil Canada main export commodity trading 1.15% higher at 54.69 just to offset the negative impact of the GDP disappointment.
USDCAD momentum is bullish as the pair breaks above the 100 and 50-day moving averages. On the upside, where traders had shifted their attention now immediate resistance stands at 1.3289 the daily high, then at 1.3296 the 200-day moving average, while more offers will emerge at 1.3344 the high from September 4th. On the downside, the pair formed a strong support zone at 1.3134 which tested successfully for three days in a row in early September. First support for the pair stands at 1.3245 the 50-day moving average while more bids will emerge at 1.3232 daily low; a break below may encourage more bears to join the action, something that is possible to lead USDCAD towards the next resistance territory, 1.3213 the low from September 27th.Download our latest quarterly market outlookfor our longer-term trade ideas.
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