Key Points
- The US Dollar after trading as low as 1.2860 against the Canadian dollar found buyers and recovered.
- There is a contracting triangle pattern formed on the hourly chart of the USDCAD pair, which is acting as a catalyst for the upside move.
- Today in the US, the MBA Mortgage Applications was released by the Mortgage Bankers Association.
- The result was disappointing, as there was a decrease of 1.3% in the MBA Mortgage Applications.
Technical Analysis
The US Dollar after declining against the Canadian dollar towards the 1.2860 level found support and traded higher. There is a contracting triangle pattern formed on the hourly chart of the USDCAD pair, which is acting as a support and pushing the pair higher.
It looks like the pair may break the triangle resistance area and could trade near the 1.236 extension of the last drop from the 1.3076 high to 1.2862 low.
On the downside, the 1.3040 is a support level.
MBA Mortgage Applications
Today in the US, 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 result was lower than the market expectation, as there was a decrease of 1.3% in the MBA Mortgage Applications. Moreover, the report stated that the “Market Composite Index, a measure of mortgage loan application volume, decreased 1.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 24 percent compared with the previous week. The Refinance Index decreased 1 percent from the previous week. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier”.
The US Dollar was unfazed by the data, and was seen gaining pace against the Canadian dollar. It could easily break higher and trade towards 1.3100.
