- US Dollar rocketed higher against the Canadian Dollar and may continue to trade higher.
- There is a major support trend line formed for USDCAD on the hourly chart, which can be seen as a buy area.
- US ADP Employment Change released by the Automatic Data Processing, Inc posted a major increase from the last reading of 211K to 257K.
- The report may help the US dollar to gain traction and trade higher in the near term. <br><br>
The USDCAD pair recently broke the 1.40 resistance area to set the tone for more upsides in the short term. The pair traded as high as 1.4108 where it found sellers and currently correcting lower.
However, the downside may be limited as there is a major support trend line formed on the hourly chart, which is also aligned with the 50 simple moving average. Moreover, the 38.2% Fib level of the last leg from the 1.3898 low to 1.4108 high.
On the upside, we need to keep an eye on 1.4100-10.
ADP Employment Change
Today, the US ADP Employment Change, which is a measure of the change in the number of employed people in the US was released by the Automatic Data Processing, Inc. The forecast was lined up for a reading below the 200K mark. However, the outcome was on the positive side, as the US ADP Employment Change posted a solid increase of 257K.
The last reading was on the other hand revised down from 217K to 211K. Overall, the report was positive and may help the US Dollar moving ahead.
The USDCAD pair is trading with a bullish bias, and as long as it is above the highlighted trend line and support area more gains are possible.