USDCAD Rises As Bulls Gain Strength
The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Friday, increasing the price of USD/CAD to more than 1.3300 ahead of the US Industrial Production 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 1.3324. A hurdle can be seen near 1.3520, the trendline resistance area as marked with brown color in the given below daily chart. A break and daily closing above the 1.3527 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 color in our chart.
On the downside, a support may be seen near 1.3282, the 50% fib level support area as demonstrated in the given above daily chart. A break and daily closing below the 1.3282 support shall incite renewed selling interest, validating a move towards the 1.3067 support zone which is another critical support zone. The technical bias shall remain bullish as long as the 1.3282 support zone is intact.
US Industrial Production News
The Board of Governors of the Federal Reserve is scheduled to release the US industrial production data today during the US trading session. According to the average forecast of different economists, the US industrial production registered a gain of 0.2% in February as compared to 0.3% decline in the month before. The Industrial Production released by the Board of Governors of the Federal Reserve shows the volume of production of US industries such as factories and manufacturing. Up trend is regarded as inflationary which may anticipate interest rates to rise. If High industrial production growth comes out, this may generate a positive sentiment (or bullish) for the USD and vice versa.
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.