Key Points
- The US Dollar recovered well from the 1.2850 low against the Canadian dollar, and closed above the 100 hourly simple moving average.
- There is a bearish trend line formed on the hourly chart of the USDCAD pair, which is acting as a resistance for the pair.
- In the US today, the MBA Mortgage Applications was released by the Mortgage Bankers Association.
- There was an increase of 14.2% registered in the MBA Mortgage Applications.
Technical Analysis
The US dollar recovered well during the past few sessions against the Canadian dollar and even settled above the 200, 100 and 50 hourly simple moving averages. However, it is facing a hurdle in the form of a bearish trend line formed on the hourly chart of the USDCAD pair.
We can say that the pair is stuck between an important resistance (trend line), and a support as the 200 hourly SMA.
A break on the any one side may call for the next move in USDCAD in the short term. The hourly RSI is above the 50 level, which is a positive sign.
MBA Mortgage Applications
Earlier today, the MBA Mortgage Applications, which presents various mortgage applications and is considered as a leading indicator of the U.S Housing Market was released by the Mortgage Bankers Association. The market was not expecting any major increase this time, but the result was positive, as there was a rise of 14.2%.
Later today, the Trade Balance will be released by the Bureau of Economic Analysis and the U.S. Census Bureau, which can further ignite a break in the USDCAD pair.
Overall, we can keep a close eye on the trend line as a resistance and on the downside, the 200 hourly SMA for support.
