Forex Trading: USDCAD Technical Analysis – September 14, 2018

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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 1.3036. 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 fell last week, a sign the labor market was holding firm despite tensions between the United States and its trading partners that have led to tit-for-tat tariffs.

Initial claims for state unemployment benefits slipped 2,000 to a seasonally adjusted 210,000 for the week ended Aug. 18, the Labor Department said on Thursday.

It was the third straight week of declines for claims, which have dropped so low that economists have scrambled for explanations. In July, claims fell to their lowest level since 1969 even though the workforce is much larger than in prior decades.

Economists polled by Reuters ahead of Thursday’s report had forecast claims rising to 215,000 in the latest 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.

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