The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Monday, increasing the price of USDCAD to more than 1.2600 following some key economic releases. The technical bias remains bearish because of the lower high in the recent downside move.
USD/CAD Technical Analysis
As of this writing, the pair is being traded around 1.2610. A resistance can be noted around 1.2822, A trend line resistance level ahead of 1.2917, a major horizontal resistance and then 1.3048, the low of March 19th, 2018 as demonstrated in the given below chart.
On the downside, a support can be noted near 1.2585, the 50% Fib level support 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 1.2770 resistance level.
US Consumer Sentiment
Consumer sentiment slipped in April, after recording its highest level since 2004 in March, amid concerns about President Donald Trump’s trade policies on the U.S. economy.
The University of Michigan’s mid-month report on consumer attitudes about the economy inched down to 97.8 in mid-April, compared with 100.5 expected by a survey of Reuters economists. The index reached 101.4 at the end of March.
The index dipped mainly due to concerns about the potential impact of Trump’s trade policies on the U.S. economy, according to the report.Trump and China have recently taken turns threatening each other with major tariffs, stoking fears of a trade war.
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.