- US Dollar after forming a bottom near 1.3280 managed to gain buyers against the Canadian Dollar.
- There was a contracting triangle formed on the hourly chart of the USDCAD pair, which was broken during the recent upside drift.
- US Initial Jobless Claims released by the US Department of Labor declined from the last reading of 271K to 260K.
- US Personal Income released by the Bureau of Economic Analysis, Department of Commerce increased by 0.4% in October 2015, just as the market expected.
As mentioned the USDCAD pair managed to break a critical descending triangle pattern on the hourly chart to set the tone for more gains, but buyers are finding offers near a major confluence area. The 100, 200 and 50 hourly simple moving averages are coinciding around a same area at 1.3330-40.
If buyers fail to take the USDCAD pair above the stated resistance area, then it may start to move lower one more time. If they manage, the pair could head towards the next resistance, which is at the 50% Fib retracement level of the last drop from the 1.3436 high to 1.3279 low.
The hourly RSI is above the 50 level, suggesting more gains moving ahead.
US Initial Jobless Claims
Today, there were a lot of economic releases scheduled in the US. The most important one was the Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance and was reported by the US Department of Labor. The forecast of a decline from 271K to 270K in claims. However, the outcome was positive, as the claims declined to 260K.
Moreover, the Personal Income, which measures the total income received by individuals, from all sources was released by the Bureau of Economic Analysis, Department of Commerce. The outcome was in line with the forecast, as there was an increase of 0.4% in income in October 2015.
Overall, the US Dollar may gain bids moving ahead, and if USDCAD manages to break 1.3340, then it may move towards 1.3400.