Key Points
- The US Dollar followed a nice uptrend and moved above 1.3380 against the Canadian Dollar.
- There is a resistance trend line at 1.3420 on the hourly chart, which is currently preventing more gains in USDCAD.
- In the US recently, the Dallas Fed Texas Manufacturing Index for March 2017 was released by the Federal Reserve Bank of Dallas.
- The result was disappointing, as there was a decline from 24.5 to 16.9 in March 2017.
USDCAD Technical Analysis
The US Dollar after a dip towards 1.3320 against the Canadian dollar formed base, and started an upside move. The mentioned move was positive, as the USDCAD pair was able to break the 1.3380 resistance area.
However, the pair faced resistance near a trend line at 1.3420 on the hourly chart. The pair has tested the 1.236 extension of the last wave from the 1.3404 to 1.3364.
So, there is a high possibility of the pair moving towards the 1.618 extension of the last wave from the 1.3404 to 1.3364 at 1.3439. On the downside, there is a support around a trend line at 1.3390.
Dallas Fed Texas Manufacturing Index
Recently in the US, the Dallas Fed Texas Manufacturing Index for March 2017 was released by the Federal Reserve Bank of Dallas. The market was expecting the index that helps in the assessment of the state’s factory activity to register no major change in March 2017 from 24.5.
The outcome was disappointing, as there was a decline from 24.5 to 16.9 in March 2017. The report added that “Other measures of current manufacturing activity also indicated expansion. The new orders index inched down to 9.5, while the growth rate of orders index inched up to 3.2, registering a third positive reading in a row. The capacity utilization and shipments indexes moved down but stayed positive, posting readings of 13.2 and 6.5, respectively”.
Overall, the USDCAD might continue to rise, and very likely to test the 1.3430 level in the near term.
