Key Points
- The US Dollar made a downside move towards 1.2050 against the Canadian Dollar before starting a correction.
- There is an ascending channel forming with support at 1.2165 on the hourly chart of USDCAD.
- Recently in Canada, the New Housing Price Index (NHPI) for July 2017 was released by the Statistics Canada.
- The outcome was above the forecast of +0.3%, as there was a rise of 0.4% in the NHPI.
USDCAD Technical Analysis
The US Dollar was under a lot of pressure lately and moved below the 1.2200 and 1.2150 support levels against the Canadian Dollar. The USDCAD pair traded towards the 1.2050 before starting a correction above the 21 hourly simple moving average.
At the moment, the pair is struggling to hold the 21 hourly simple moving average and following an ascending channel forming with support at 1.2165 on the hourly chart.
It seems like the pair might fail to remain in the ascending channel and would soon break the 1.2150 support once again to trade towards 1.2100.
Canada’s New Housing Price Index
Recently in Canada, the New Housing Price Index (NHPI) for July 2017 was released by the Statistics Canada. The market was positioned for the New Housing Price Index to increase by 0.3% compared with the previous month.
The actual result was above the forecast of +0.3%, as there was a rise of 0.4% in the NHPI. In terms of the yearly change, there was a rise of 3.8%, less than the last +3.9%. The report added that:
Toronto reported no change in new home prices for the second consecutive month. With the exception of Hamilton (+1.5%) and London (+0.9%), prices remained muted in the rest of Southern Ontario as well.
Overall, the USDCAD pair remains at risk and might soon break the 1.2165 support for further declines in the near term.
