The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Wednesday, increasing the price of USDCAD to more than 1.3300 following some key economic releases. The technical bias may remain bearish because of the higher low in the recent upside move.

USD/CAD Technical Analysis

As of this writing, the pair is being traded around 1.3335, a resistance can be noted around 1.3366, the major horizontal resistance ahead of 1.3418, the trendline resistance and then 1.3435, the 61.8% Fib level resistance as demonstrated in the given below chart.

On the downside, A support can be noted near 1.3294, the 38.2%  Fib level support ahead 1.3208,  the trendline support level and then 1.3196, the key horizontal support level as demonstrated in the given above chart. The technical bias shall remain bearish as long as 1.3366, the major horizontal resistance level remains intact.

ISMI Prices Paid News – United States

In the United States, the figure concerning the price index of ISMI remained  60.7 in November, as compared to 71.6 during the month before, down beating the economist expectation which was 69.1. The data is copied from the news released by the US Institute for Supply Management.

It shows the prevailing condition of the manufacturing market of the country. The figure is derived after taking into account various elements of the market such as new orders placed, the estimated rate of production for the future, employment rate, available inventories, and deliveries made so far.

The  ISM figure is considered as a sensitive indicator of the US economy. It is also taken as an indicator of the sentiment of business concerning the inflation that may occur in a due course of time. Generally speaking, high reading in this regard is taken as a bullish trend for the US Dollar (USD) and vice versa.

Trade Idea

Considering the overall price behavior of the pair over the last couple of days, selling the USDCAD around current levels can be a good decision in short to medium term.