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USDCAD Tests the 50-day MA and Turns Positive

usdcad Bank Of Canada
usdcad Bank Of Canada

USDCAD trades slightly higher after Friday’s sharp correction from 1.3251 as a result of macro data from US that pressured USD across the board. The US retail sales for October registered at 0.3% above forecasts of 0.2%; the Retail Sales Control Group came in at 0.3% in line with analysts forecasts. The Empire Manufacturing for November came in at 2.90, below expectations of 6.00.

The US Industrial Production (month over month) came in at -0.8% below expectations of -0.4% for October, while the Capacity Utilization came in at 76.7%, below expectations of 77.1% in October.

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USDCAD Technical Analysis Levels

USDCAD failed the previous week to break above the 200-day moving average  and started a correction that brought the price today down to the 50-day moving average which absorbed the offers and gave an intraday rebound.

First support for USDCAD stands at 1.3208 the daily low which if broken might accelerate the fall further towards 1.3199 the next support which provides the 100-day moving average, followed by the October 8th low at 1.3170.

On the upside, immediate resistance for the pair would be met at 1.3234 today’s top at 1.3251, a move above will target the next resistance at 1.3274 the 200-day moving average. USDCAD outlook is neutral now and traders need to wait for a break above the 200-day moving average or below the 100-day moving average to catch the next trend.More content