Key Points
- The US Dollar enjoyed solid gains against the Canadian dollar and looks set for more upsides.
- There is a bullish trend line formed on the hourly chart of the USDCAD pair, which is acting as a support area.
- On the upside, a break above the 1.3240 level could clear the way for a move towards 1.3300.
- The S&P/Case-Shiller Home Price Indices released by the Standard & Poor’s posted a rise of 5.2% in Mya 2016, less than the forecast of 5.5%.
Technical Analysis
The US Dollar climbed higher this week against the Canadian dollar, and settled above the 1.3200 resistance area. The USDCAD pair is following a bullish trend line formed on the hourly chart, which is acting as a catalyst for an upside move.
The same trend line is positioned with the 21 hourly simple moving average, suggesting the importance of the trend line support.
On the upside, the US Dollar buyers need to clear the 1.3240 resistance area for a move towards the 1.3300 level. On the other hand, a break below the trend line could ignite a correction towards 1.3150.
US S&P/Case-Shiller Home Price Indices
Today in the US, the S&P/Case-Shiller Home Price Indices, which examines changes in the value of the residential real estate market in 20 regions across the US was released by the Standard & Poor’s.
The market was poised for a rise of 5.5% in May 2016, compared with the last increase of 5.4%. However, the outcome was a bit lower, as the S&P/Case-Shiller Home Price Indices rose 5.2% in May 2016, compared with May 2015.
The US Dollar was seen trading a few points lower after the release, but as long as the USDCAD pair is above the trend line, it may continue to trade higher.
