Key Points
- The US Dollar after trading lower found support at 1.3570 against the Canadian Dollar.
- The USDCAD pair is attempting a recovery, but facing two important bearish trend lines with resistance near 1.3630 on the hourly chart.
- Recently in Canada, the Manufacturing Shipments figure for March 2017 was released by the Statistics Canada.
- The result was in line with the forecast, as there was an increase of 1% in the Manufacturing Shipments.
USDCAD Technical Analysis
The US Dollar was under pressure this week and traded below 1.3650 against the Canadian Dollar, and later managed to find support near 1.3570. The USDCAD pair started a recovery, and just moved above the 23.6% Fib retracement level of the last decline from the 1.3742 high to 1.3571 low.
However, the pair is currently trading around two important bearish trend lines with resistance near 1.3630 on the hourly chart and the 21 hourly simple moving average.
So, if the pair moves higher, and settles above the highlighted resistance at 1.3630-40, there can be more gains in USDCAD going forward. On the downside, the 1.3570 support holds the key in the short term.
Canada’s Manufacturing Shipments
Recently in Canada, the Manufacturing Shipments figure for March 2017 was released by the Statistics Canada. The market was expecting an increase of around 1% in Shipments in March 2017, compared with the previous month.
The outcome was in line with the forecast, as there was an increase of 1% in the Manufacturing Shipments. It was better than the last -0.2%. The report added that “Overall, sales were up in 16 of 21 industries, representing 71% of the Canadian manufacturing sector. Sales of durable goods rose 1.3% to $28.4 billion, while sales of non-durable goods increased 0.7% to $25.4 billion”.
Overall, the USDCAD pair may attempt an upside break above 1.3630 in the near term.
