USDCAD Jumps to Three Week Highs and Retreat

USDCAD trades 0.22 percent higher at 1.3220 in positive momentum for second consecutive day, having the daily high at 1.3247 and the daily low at 1.3182. USD continues to attract bids as investors digest the interest rate cut by Fed yesterday. The US July ISM manufacturing index came in at 51.2 missing expectations of 52.0. On the other hand Canada Markit Manufacturing PMI improved to 50.2 in July beating expectations of 49.5.

Crude oil, Canada main export product dives over 2.5% at $57.05 per barrel. The USD index is trading higher across majors since yesterday and adds 0.08% at 98.65.

Bulls are in control for the short term as the pair trading above all major hourly moving averages. Today the pair jumped above the 50 day moving average at 1.3221 but after the PMI’s breached again below the 1.3221. On the downside first support stands at 1.3182 today’s low and then at 1.3171 the 100 hour moving average. Immediate resistance for the pair stands at 1.3247 today’s high, and then at 1.3296 the 200 day moving average. Long positions are probably safe as long as the pair trades above the 1.32 mark. Failure to close above the 50 day moving average today will question the short term positive momentum and some profit taking might push the price lower.Don’t miss a beat! Follow us on Twitter.