- US Dollar continued to move higher against the Canadian Dollar and looks set for more upsides in the near future.
- There is a major support trend line formed on the hourly chart of the USDCAD pair, which might act as a buy zone for the pair.
- In the US the Services Purchasing Managers Index (PMI) released by Markit Economics registered a decline from the last reading of 55.1 to 54.4 in October 2015.
The US Dollar enjoyed good gains recently against the Canadian Dollar, as the USDCAD pair traded above a major resistance area of 1.3200. The upside move looks solid, as there is a bullish trend line formed on the hourly chart, acting as a catalyst for a move higher.
Moreover, the pair is above the 100, 200 and 50 simple moving averages on the hourly chart that is a bullish sign in the near term. A break above 1.3230 could take the pair further higher.
On the downside, an initial support is around the 50 MA, followed by the 100 MA and the trend line.
US Services PMI
Earlier during the NY session, there was a major release in the US. The Services Purchasing Managers Index (PMI) representing business conditions in the services sector was reported by Markit Economics.
The forecast was lined up for no change from 55.1 in October 2015. However, the outcome was disappointing, as the US Services Purchasing Managers Index registered a decline to 54.4.
So, there is a chance of a minor correction in the US Dollar in the short term. However, looking at the charts it can be seen as a buying opportunity. Let’s see how the USDCAD pair trades moving ahead.