The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Wednesday, increasing the price of USDCAD to more than 1.3000 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 1.3147. A resistance can be noted around 1.3372, a trend line resistance level ahead of 1.3417, a major horizontal resistance and then 1.3548, 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
The number of Americans filing for unemployment benefits rose from a more than 48-1/2-year low last week, but continued to point to a tightening labor market.
Initial claims for state unemployment benefits increased 9,000 to a seasonally adjusted 217,000 for the week ended July 21, the Labor Department said on Thursday. Claims dropped to 208,000 during the week ended July 14, which was the lowest reading since December 1969.
Economists polled by Reuters had forecast claims rising to 215,000 in the latest week. Claims data tends to be volatile around this time of the year when motor vehicle manufacturers shut assembly lines for annual retooling.
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.