USDCAD Pare Losses After Better Than expected ISM Non-Manufacturing PMI

USDCAD
USDCAD

USDCAD pare early losses and reverse three days of losses as the risk-on sentiment shift investors attention from the safe-haven USD to more risky assets. The U.S. ISM Non-Manufacturing PMI came in at 57.1, beating the expectations of 50.1 in July. The ISM Non-Manufacturing New Orders Index registered in at 61.6 also above the forecasts of 44 in June. The ISM Non-Manufacturing Employment Index registered in at 43.1, topping the estimates of 30.7.

The United States Services PMI registered in at 47.9, above the analyst’s expectations of 46.7 in June. The PMI Composite came in at 47.9, topping the estimates of 46.8.

The data today came after better than expected economic data from the USA the previous week but didn’t support USD as the risk-on sentiment improved.

Brent crude oil price approaches the recent highs on recovery hopes, and that gives an extra hand to the Canadian dollar.

USDCAD Daily Technical Analysis   

The USDCAD is 0.02% lower at 1.3542 as the recent negative momentum drive the pair close to two-week lows. The technical outlook is negative now for the short term, while a break below the 200-day moving average would attract more sellers to join the action for another leg lower.   

On the downside, the first support for USDCAD pair stands at 1.3519 the daily low. If the pair breaks below 1.3519, the next support area will be met at 1.3496 the 200-day moving average. The next target for bears would be met at 1.3401 the low from June 11. 

On the other hand, the immediate resistance for USDCAD stands at 1.3563 the daily high. If USDCAD breaks higher, the next resistance zone will be met at 1.3623 the high from July 2. The next hurdle for the pair is at 1.3700 the high from June 30. 

On the upside, first resistance for the Dow index stands at 25,601 the high from yesterday. A move above 25,601 might open the way for a test of 25,027 the high from June 24. If the bulls continue then the next supply zone for the Dow Jones is at 26,274 the 200-day moving average. 

On the flip side, immediate support for Dow Jones index is at 25,096 the low from yesterday. Next support for the Dow Jones will be met at 24,952 the 50-day moving average. A break below 24,952 might open the way for a test of 24,755 the 100-day moving average. 

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USDCAD Daily Chart

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