USDCAD Seesaws around 50 Day MA

USDCAD trades almost unchanged today at 1.3210 as the pair struggles for third trading session in a row to close above the 50 day moving average. The momentum is positive for the pair, having the daily high at 1.3246 and the daily low at 1.3176. ISM Non-Manufacturing PMI dropped to 53.7 in July, the lowest since August 2016 and below expectations of 55.5. The US Markit Services PMI came in at 53, toping forecasts of 52.2 in July. Crude oil, Canada’s main export product dives over 1.70% at $54.71 per barrel. The USD index is trading lower as the US trading session starts.

Bulls are in control in USDCAD 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 1.3216 but after the ISM Non-Manufacturing PMI breached again below the 1.3216. On the downside first support stands at 1.3176 today’s low and then at 1.3104 the low from July 30. Immediate resistance for the pair stands at 1.32467 today’s high, and then at 1.3297 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.