The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Friday, 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 1.3015. 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
The number of Americans filing for unemployment benefits unexpectedly fell last week, pointing to a further tightening in labor market conditions.
Initial claims for state unemployment benefits fell 1,000 to a seasonally adjusted 222,000 for the week ended June 2, the Labor Department said on Thursday. Economists polled by Reuters had forecast claims rising to 225,000 in the latest week.
The four-week moving average of initial claims, viewed as a better measure of labor market trends as it irons out week-to-week volatility, rose 2,750 to 225,500 last week.
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.