FXOpen
The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Wednesday, increasing the price of USDCAD to more than 1.3400 but the pair remains vulnerable because of repeated rejections at 1.3560 resistance area. The technical bias remains slightly bullish because of a Higher High in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 1.3429. A support can be seen around 1.3400 which is the confluence of psychological number as well as a short term horizontal support area as demonstrated in the given below chart. A break and daily closing below the 1.3400 support shall incite renewed selling interest, validating a move towards the 1.3238, a major horizontal support.
On the upside, the pair is likely to face a hurdle around 1.3513, the intraday high of yesterday ahead of 1.3560, the horizontal resistance area and then 1.3588, the swing high of the last major upside rally. The technical bias shall remain bullish as long as the 1.3263 support area is intact.
Canada Retail Sales
Nov 22 Canadian retail sales picked up in September as auto purchases climbed for the first time in three months on demand for new cars, data from Statistics Canada showed on Tuesday, reinforcing expectations that economic growth rebounded in the third quarter. Retail sales rose 0.6 percent, in line with economists’ expectations, but would have been flat without the increased purchases of cars and parts.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair on short term upside waves could be a good strategy in medium term.
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.
Latest articles
Santa Claus Rally: How Will Christmas Impact Stock Markets in 2024
The Santa Claus rally is a well-known seasonal phenomenon where stock markets often see gains during the final trading days of December and the start of January. But what causes this year-end trend, and how does Christmas influence stock markets
GBP/USD Analysis: Pair Recovers from 7-Month Low
The GBP/USD pair dropped below the psychological level of 1.25 today, a level last seen in early May. Over the past two days, the pair has declined by more than 1.5%, driven by central bank decisions.
On
Micron Technology (MU) Stock Drops 16%
On Wednesday, Micron Technology released its quarterly earnings report after the main trading session closed. The results aligned closely with analysts' expectations: earnings per share came in at $1.79, slightly above the forecast of $1.76, while revenue met