Key Points
- The US Dollar made a downside move towards 1.2920 against the Canadian Dollar from where it recovered.
- There are two major bearish trend lines forming near 1.3010 on the hourly chart of USDCAD, which might play a major role.
- Recently in the US, the ISM Non-Manufacturing Index for June 2017 released by the Institute for Supply Management (ISM) posted an increase from 56.5 to 57.4.
- Today’s June 2017 NFP release in the US might impact the pair in the short term.
USDCAD Technical Analysis
The US Dollar declined recently and moved towards the 1.2920 level against the Canadian Dollar where it found support. The USDCAD pair found bids above 1.2900 and later started a correction above the 23.6% Fib retracement level of the last decline from the 1.3015 high to 1.2923 low.
During the upside, the pair also broke the 21 hourly simple moving average and the 50% Fib retracement level of the last decline from the 1.3015 high to 1.2923 low.
On the upside, there are two major bearish trend lines forming near 1.3010 on the hourly chart. A break and close above these trend lines and 1.3010 might call for more gains.
US ISM Non-Manufacturing Index
Recently in the US, the ISM Non-Manufacturing Index for June 2017 was released by the Institute for Supply Management (ISM). The market was positioned for a minor decline from the last reading of 56.9 to 56.5 in June 2017.
The actual result was above the forecast, as the ISM Non-Manufacturing Index posted an increase from 56.9 to 57.4. The report stated that:
This represents continued growth in the non-manufacturing sector at a slightly faster rate. The Non-Manufacturing Business Activity Index increased to 60.8 percent, 0.1 percentage point higher than the May reading of 60.7 percent, reflecting growth for the 95th consecutive month, at a slightly faster rate in June.
Overall, the USDCAD pair may rise above 1.3010 in the near term, but it depends on today’s June 2017 NFP release in the US as well.
