Key Points
- The US Dollar is in an uptrend and is positioned well above the 1.2675 support against the Canadian Dollar.
- There is a major bullish trend line forming with support at 1.2675 on the hourly chart of USDCAD.
- Recently in the US, the Richmond Fed Manufacturing Index for Oct 2017 was released by Federal Reserve Bank of Richmond.
- The outcome was below the forecast of 17 as there was a decline from the last reading of 19 to 12.
USDCAD Technical Analysis
The US Dollar enjoyed decent gains and moved above the 1.2650 resistance against the Canadian Dollar. The USDCAD pair is following a nice uptrend and is currently positioned well above the 1.2675 support and the 21 hourly simple moving average.
There pair corrected lower recently and tested the 23.6% Fib retracement level of the last wave from the 1.2623 low to 1.2693 high. There is a major bullish trend line forming with support at 1.2675 on the hourly chart, which is holding losses.
As long as the pair is above the 1.2675 support and the 21 hourly SMA, it remains in an uptrend. The next move in USDCAD could be a break of 1.2700 for a move towards 1.2720.
Richmond Fed Manufacturing Index
Recently in the US, the Richmond Fed Manufacturing Index for Oct 2017 was released by Federal Reserve Bank of Richmond. The market was positioned for a minor decline in the index from the last reading of 19 to 17.
The actual result was below the forecast of 17 as there was a decline from the last reading of 19 to 12. The report added that:
The composite index dropped, affected by a notable decline in the shipments index, which fell from 22 to 9, but it remained positive across all components, indicating continued growth. While most manufacturing indexes fell in October, the wage index increased from 17 to 24, which is the highest it has been since May of 2000.
Overall, the USDCAD pair was not affected much, and it remains in the uptrend, eyeing an upside break above 1.2700.
