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 1.3088. A resistance can be noted around 1.3122, a trend line resistance level ahead of 1.3200, the psychological number and then 1.3225, the key horizontal resistance as demonstrated in the given below chart.

On the downside, a support can be noted near 1.3056, the 61.8% Fib level support ahead of 1.2988, the trendline support and then 1.2886, a major horizontal support as demonstrated in the given above chart. The technical bias shall remain bullish unless 1.3003 resistance level remains intact.

US Michigan Consumer Sentiment Index News

In the United States, the index rate of Michigan consumer sentiment remained 100.8 in September, as compared to 96.2 during the month before, up beating the economist expectation which was 96.6, the data is sourced from the news released by the University of Michigan, United States.

The figure represents the level of consumers’ confidence in the economic activity of the US Dollar (USD). The data indicates if the consumer is willing to spend more money or not. Generally speaking, a high or positive reading in this regard is considered as a bullish trend for the US Dollar whereas a low or negative reading indicates a bearish market for the US Dollar (USD).

Trade Idea

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