The US Dollar (USD) extended upside movement against the Canadian Dollar (CAD) on Friday, increasing the price of USDCAD to more than 1.3100 following the release of some key economic news and events. The technical bias remains bearish because of a lower low in the recent wave.
Technical analysis:
As of this writing the pair is being traded around 1.3146. A support can be seen around 1.3110-1.3100, the confluence of horizontal support area as well as psychological number. A break and daily closing below 1.3100 shall incite renewed selling pressure, validating a move towards the 1.2980 support area which is another critical support as demonstrated in the give below daily chart.
On the upside, the pair is expected to face a hurdle around 1.3309, the horizontal resistance area ahead of 1.3400 the psychological number and then 1.3598, the swing high of the last major upside rally. The technical bias shall remain bullish as long as the 1.3080 support area is intact.
Fed Yellen Speach
Federal Reserve Chair Janet Yellen did not comment on the outlook for the U.S. economy or monetary policy in remarks to teachers, saying improving U.S. education could help raise living standards.
“Improving education is at the top of my list,” Yellen said in prepared remarks at a town hall meeting with educators, referring to the types of policies and initiatives that might spur economic growth and make Americans better off.
Trade Idea:
Considering the overall the technical and fundamental outlook buying the pair around current levels appears to be a good strategy in short to medium term.
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