USDCAD Rebounds From The Support at 200-Day SMA

USDCAD
USDCAD

USDCAD rebound today as the risk returns to markets after a mixed set of economic data from the USA and China. The United States Philadelphia Fed Manufacturing Survey came in at 24.1, above the expectations of 20 in July. The Retail Sales increase by 7.5% in June beating the expectations of 5%. On the employment front, the Initial Jobless Claims came in at 1300K above the estimates of 1250K in the week of July 10. The Initial Jobless Claims 4-week average fell from the previous 1437.25K to 1375K, while the Continuing Jobless Claims registered in at 17.338M, below the expectations of 17.6M on July 3.

From Canada, the ADP Employment Change came up to 1042.9K in June from the previous 208.4K.

The pair still moves on the risk-on – risk-off sentiment and the recent rally in risky assets and the Canadian dollar boosted on hopes of a fast recovery after the positive results from the initial stages of the Moderna’s coronavirus vaccine. However, the rising number of new infections shift investors attention to safe-haven assets such as USD.

USDCAD Price Daily Analysis     

The USDCAD is 0.18% higher at 1.3533 as the pair tested and managed to bounce from the critical 200-day moving average. The technical outlook for USDCAD is bearish for the short term while a break below the 200-day moving average might accelerate the correction down to 1.30 mark. 

On the upside, the initial resistance for USDCAD stands at 1.3545 the daily high. If USDCAD breaks higher, the next resistance area will be met at 1.3615 the top from July 15 session. The next obstacle for the pair is at 1.3677 the 50-day moving average.  

On the flip side, the immediate support for USDCAD stands at 1.3501 the daily low. If the pair breaks below 1.3501, the next support area will be met at 1.3392 the low from June 11. The next target for sellers would be met at 1.3315 the low from June 10. 

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USDCAD Daily Chart

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