Key Points
- The US Dollar traded higher vs the Canadian dollar recently, but failed to break the 1.3330-40 resistance area.
- There is a connecting bullish trend line with support at 1.3280 formed on the hourly chart of USDCAD.
- Recently in the US, the NAHB Housing Market Index for April 2017 was released by the National Association of Home Builders.
- The outcome was below the forecast, as the NAHB Housing Market Index declined from the last reading of 71 to 68.
USDCAD Technical Analysis
The US Dollar after a decline towards the 1.3220 level against the Canadian dollar found support and recovered. During the upside, it broke the 1.3280 resistance and the 21 hourly simple moving average to register gains.
However, the pair is currently struggling near a major resistance at 1.3330-40. The same resistance acted as a barrier earlier, and now preventing gains above 1.3340. So, the pair may correct a bit lower towards a connecting bullish trend line with support at 1.3280.
Moreover, the 23.6% Fib retracement level of the last wave from the wave from the 1.3223 low to 1.3338 high is also aligned with the 21 hourly simple moving average at 1.3310 to act as a support.
NAHB Housing Market Index
Recently in the US, the NAHB Housing Market Index for April 2017 was released by the National Association of Home Builders. The forecast was lined up for no major decline in the index in April 2017 from the last reading of 71.
The result was below the forecast, as the NAHB Housing Market Index declined from the last reading of 71 to 68. Commenting on the report, the NAHB Chairman, Granger MacDonald, a home builder and developer from Kerrville, Texas, stated “Even with this month’s modest drop, builder confidence is on very firm ground, and builders are reporting strong interest among potential home buyers”.
Overall, the USDCAD pair may find it tough to break 1.3340, and could correct lower in the near term towards 1.3290.
