Key Points
- The US Dollar is currently struggling against the Canadian Dollar and remains below the 1.3500 resistance.
- The USDCAD pair is about to break a major bullish trend line at 1.3460 on the hourly chart.
- Recently in the US, the Factory orders report for April 2017 was released by the US Census Bureau.
- The outcome was around the forecast, as there was a decline of 0.2% in orders in April 2017 (MoM).
USDCAD Technical Analysis
The US Dollar struggled around the 1.3540-50 levels against the Canadian Dollar, and later started moving lower. The USDCAD pair traded lower and broke the 1.3500 support and the 21 hourly simple moving average.
The pair even broke the last swing low of 1.3472, and likely to decline further. It looks like the pair is about to break a major bullish trend line at 1.3460 on the hourly chart.
If there is a break and close below 1.3460, there could be a move towards the 1.236 extension of the last wave from the 1.3472 low to 1.3547 high. On the upside, the 21 hourly simple moving average and the 1.3500 resistance are key hurdles for buyers.
US Factory Orders
Recently in the US, the Factory orders report for April 2017 was released by the US Census Bureau. The market was positioned for a minor decline of0.2% in April 2017, compared with the previous month.
The result was around the forecast, as there was a decline of 0.2% in orders in April 2017. However, it was a lot worse than last increase of 1% (revised from 0.5%). The report added that “New orders for manufactured goods in April, down following four consecutive monthly increases, decreased $0.8 billion or 0.2 percent to $469.0 billion“.
Overall, the USDCAD pair may break the 1.3460 support soon and trade towards 1.3430 in the near term.
