- The US Dollar after creating a new daily high of 1.3140 moved down against the Canadian Dollar.
- There is a bullish trend line formed on the hourly chart of the USDCAD pair, which can be seen as a buy zone in the short term.
- In the US today, the New Home Sales report will be released by the US Census Bureau, which is the only risk event for the day.
- Any disappointment in the New Home Sales figure may call for a downside move in the US Dollar.
The US Dollar struggled to break the 1.3140 level recently against the Canadian Dollar and started to move down. There is a bullish trend line formed on the hourly chart of the USDCAD pair, which is acting as a support area and pushing the pair higher.
The pair is above the 50 and 100 hourly simple moving average, which is a positive sign and may take the pair higher in the near term.
If the pair breaks the 50 SMA and the trend line, there is a chance of more losses in USDCAD moving ahead.
US New Home Sales
Today, the US New Home Sales figure, which points and highlights the strength in the housing market conditions in the US will be released by the US Census Bureau. The market is aligned that the number of the New Home Sales will be 0.510M in Feb 2016, compared with the previous month.
Moreover, the New Home Sales Change percentage is forecasted to increase by 3.2% in Feb 2016, compared with the previous month. Any disappointment in the New Home Sales figure may call for a downside move in the US Dollar. On the other hand, a rise my ignite upsides in the US Dollar.
Overall, the USDCAD may trade higher as long as it is above the trend line and support area.