The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Tuesday, increasing the price of USDCAD to more than 1.2950 following some key economic releases. The technical bias remains bullish because of the higher high in the recent upside move.
USD/CAD Technical Analysis
As of this writing, the pair is being traded around 1.2987. A resistance can be noted around 1.3072, a trend line resistance level ahead of 1.3117, a major horizontal resistance and then 1.3148, the high of March 19th, 2018 as demonstrated in the given below chart.
On the downside, a support can be noted near 1.2818, the low of yesterday ahead of 1.2500, the psychological number and then 1.2482, a major horizontal support as demonstrated in the given above chart. The technical bias shall remain bearish unless it breaks the 1.3100 resistance level.
US Jobless Claims News
New applications for U.S. unemployment benefits fell more than expected last week, but claims for several states, including California and Virginia, were estimated.
Initial claims for state unemployment benefits dropped 13,000 to a seasonally adjusted 221,000 for the week ended May 26, the Labor Department said on Thursday. Claims data for the prior week was unrevised.
Economists polled by Reuters had forecast claims falling to 228,000 in the latest week. The Labor Department said claims for California, Kansas, Virginia, Maine, Hawaii, Puerto Rico and the Virgin Islands were estimated last week because of Monday’s Memorial Day holiday.
Trade Idea
Considering the overall price behavior of the pair over last couple of days, selling the USDCAD around current levels can be a good decision in short to medium term.