Key Points
- The US Dollar recovered well from 1.2590 against the US Dollar, but failed to break 1.2700.
- There are two bearish trend lines forming with resistance at 1.2690 and 1.2710 on the hourly chart of USDCAD.
- Recently in Canada, the Manufacturing Shipment report for June 2017 was released by the Statistics Canada.
- The outcome was below the forecast, as there was a decline of 1.8% in shipments (MoM).
USDCAD Technical Analysis
The US Dollar after a sharp decline this week towards 1.2600 against the Canadian Dollar found support. The USDCAD pair consolidated near 1.2600 for some time before making an upside move towards 1.2650.
The pair moved higher and even traded above the 1.2660 level. However, sellers protected gains above 1.2700 and the 21 hourly simple moving average. The pair is correcting lower and already below the 23.6% Fib retracement level of the last wave from the 1.2589 low to 1.2691 high.
On the upside, there are two bearish trend lines forming with resistance at 1.2690 and 1.2710 on the hourly chart of USDCAD. On the downside, the next major support is near the 50% Fib retracement level of the last wave from the 1.2589 low to 1.2691 high at 1.2640. Selling rallies near 1.2690-1.2700 might be considered.
Canada’s Manufacturing Shipment
Today in Canada, the Manufacturing Shipment report for June 2017 was released by the Statistics Canada. The market was positioned for a decline of 1% in shipments compared with the previous month.
The actual result was below the forecast, as there was a decline of 1.8% in shipments. The report added that:
Manufacturing sales fell 1.8% to $53.9 billion in June, following three consecutive monthly gains. The declines were mainly due to lower sales in the petroleum and coal product, transportation equipment, and chemical industries.
Overall, the USDCAD pair might continue to face sellers and it could resume downtrend towards 1.2630 in the near term.
