USD/CAD – 1.1200 Remains the Key Support Area

FXOpen

USD/CAD tried to extend upward movement on Monday, but dragged from 1.1225 down to the 1.1220 level. 1.1210 remains the key support, the psychological number and 23.6% fib level. On breaching this support, a bearish breakout will be seen. However, the overall bias is bullish because of the Higher Low on the daily chart.

On the upside, an immediate resistance lies around 1.1224, as demonstrated by the trend line in the following chart. Breaking this resistance will invalidate the bearish breakout that can spur a renewed buying interest confirming a new upside rally towards the next resistance that can be seen around 1.1297, the high of the previous week.

On the downside, a support can be seen around 1.1097, the 38.2% fib level, ahead of 1.1070, the 50-day SMA. The bias will remain bullish unless the price succeeds in breaching the support around 1.1184.

usd-cad analysis

Markit Services PMI

The USD Markit Services PMI remains at 58.0 points this October, according to the average forecast of different economists. In comparison, the growth of services sector was recorded at 58.9 points, the month before. Generally speaking, a higher reading is considered bullish for the US Dollar (USD).

Pending Home Sales

The USD pending homes sales are also due to release by National Association of Realtors later in the day during the US session. The residential housing contract activity in the US is expected to increase by 0.5% this October. Generally speaking, a higher reading is considered positive for the USD and vice versa.

Trading Strategy

Considering the overall fundamental and technical analysis, going long is appropriate in short to medium term only if the daily candle closes above 1.1241.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

An Important Bullish Pattern Forms on the NIO Share Price Chart
Shares

An Important Bullish Pattern Forms on the NIO Share Price Chart

Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 – a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April,

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season
Indices

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season

Despite the fact that President Trump’s earlier decision to impose tariffs (at higher rates than expected) shook the stock markets, the S&P 500 index (US SPX 500 mini on FXOpen) could still end April without significant losses

USD/CAD Consolidates
Forex Analysis

USD/CAD Consolidates

In the second half of April, the USD/CAD chart has shown a decline in volatility following significant spikes observed since February.

The Canadian dollar has stabilised against the US dollar within the 1.390–1.380 range over the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.