USD/CAD Bounces Off 100-Hour MA to Top 1.2385 After the US Data

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The USD/CAD currency pair on Tuesday bounced off the 100-hour moving average to surge above 1.2385 after the US data. The currency pair continues to trade within an ascending channel formation in the 60-min chart.

The pair still trades below the trendline resistance despite Tuesday’s rebound. It is also a few levels off overbought conditions of the 14-hour RSI. Therefore, the current trend could continue for the foreseeable future.

The USD/CAD Fundamentals Overview

From a fundamental perspective, the USD/CAD currency pair is trading at the back of a relatively busy period in the US market. On Tuesday, the US Housing Price Index for August missed the (MoM) expectation of 1.3% with a change of 1%. 

On the other hand, the S&P/Case-Shiller Home Price Indices for August missed the (YoY) expectation of 20.1% with 19.7%, while New Home Sales for September outperformed 0.76 million with 0.8 million. Looking forward, traders will be waiting for Wednesday’s US durable goods orders and nondefense capital goods for trading insights.

In Canada, traders will be anticipating Wednesday’s Bank of Canada’s rate statement and the interest rate decision. They will also be looking forward to the BoC’s monetary policy report.

USD/CAD Technical Analysis (the 60-min Chart)

Technically, the USD/CAD currency pair seems to be trading within an ascending channel formation in the 60-min chart. As a result the pair now trades close to the 14-hour RSI. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to ride the current rally towards 1.2404, or higher to 1.2422. On the other hand, the bears could target potential pullback profits at about 1.2370, or lower at 1.2350.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within a descending channel formation. The currency pair seems to have plummeted closer to the oversold conditions of the 14-day RSI. This indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will be looking to stretch the current downward movement towards 1.2313, or lower to 1.2243. On the other hand, the bulls will be targeting long-term rebounds at about 1.2444, or higher at 1.2511.

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