- The US Dollar after trading towards 1.3800 against the Canadian Dollar managed to recover and traded higher.
- The USDCAD pair is currently trading near a major bearish trend line on the hourly chart, acting as a resistance for more gains.
- A break above the trend line resistance and 100 MA may open the doors for more upsides.
- Today, the Dallas Fed – Texas Manufacturing Outlook Survey will be released, which may ignite the next move in USDCAD.
The USDCAD recovered well after trading as low as 1.3810, and even traded above the 50 and 200 hourly simple moving average. There is a bearish trend line formed on the hourly chart, which is currently protecting an upside move.
If the pair manages to clear the trend line and resistance area, then the 100 hourly simple moving average may come into action. Moreover, we can also keep an eye on the 61.8% Fib retracement of the last drop from the 1.3937 high to 1.3811 low.
On the downside, an immediate support can be around the 200 and 50 MA’s intersection area.
Dallas Fed Manufacturing Business Index
Today, the Texas Manufacturing Outlook Survey conducted by the Dallas Fed monthly to obtain a timely assessment of the state’s factory activity will be published. The last reading stands at -4.9, and it would be interesting to see how the outcome shapes up and whether there is a rise in December 2015 or not.
If the Texas Manufacturing Outlook index rises and registers a good reading, then it may lift the market sentiment in favor of the US dollar bulls.
A break above the trend line and resistance area could be a game changer and may take the USDCAD pair towards 1.3900-20 in the short term.