The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Friday, increasing the price of USD/CAD to more than 1.3350 ahead of the US initial jobless claims news. The technical bias remains bullish because of a higher high in the recent upside move.
Technical Analysis
As of this writing, the pair is being traded around 1.3373. A hurdle can be seen near 1.3390, the trendline resistance area as marked with red color in the given below daily chart. A break and daily closing above the 1.3390 resistance shall trigger fresh buying pressure, opening door for a move towards the 1.3600 resistance, the high of 28th December, 2016 as marked with red box in our chart.
On the downside, a support may be seen near 1.3363, the trendline support area as demonstrated with pink color in the given above daily chart. Not to mention, 1.3363 is also the 50% fib level support zone. A break and daily closing below the 1.3363 support shall incite renewed selling interest, validating a move towards 1.3067 which is another critical support zone. The technical bias shall remain bullish as long as the 1.3067 support zone is intact.
US Initial Jobless Claims
The number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly, official data showed on Thursday. In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose to a seasonally adjusted 258K, from 243K in the preceding week whose figure was revised up from 241K. Analysts had expected initial jobless claims to fall to 240K last week.
Trade Idea
Considering the overall 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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