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USDCAD – US Dollar Poised To Extend Gains Vs Canadian Dollar

Key Points

  • The US Dollar remains in a decent uptrend and placed well above the 1.2700 support against the Canadian Dollar.
  • There are two bullish trend lines forming with support at 1.2690 on the hourly chart of the USDCAD pair.
  • Recently in Canada, the New Housing Price Index (NHPI) for June 2017 was released by the Statistics Canada.
  • The outcome was below the forecast, as there was an increase of 0.2% in the index (MoM).

USDCAD Technical Analysis

The US Dollar made a nice upside move and traded higher from the 1.2550 swing low against the Canadian Dollar. The USDCAD pair traded with a positive bias and currently positioned well above the 1.2700 support and the 21 hourly simple moving average.

USDCAD Technical Analysis

There pair recently traded as high as 1.2753 where it found a connecting bearish trend line. It may correct lower in the short term towards the 23.6% Fib retracement level of the last wave from the 1.2673 low to 1.2753 high.

Moreover, the 21 hourly simple moving average at 1.2710 along with the 50% Fib retracement level of the last wave from the 1.2673 low to 1.2753 high is a major support. On the upside, a break above 1.2750 could open the doors for more gains.

Canada’s New Housing Price Index

Today Canada, the New Housing Price Index (NHPI) for June 2017 was released by the Statistics Canada. The market was positioned for an increase of 0.4% in the index compared with the previous month.

The actual result was below the forecast, as there was an increase of 0.2% in the index. It was also a lot lower than the last 0.7%. In terms of the yearly change, the New Housing Price Index increased 3.9%, which was a bit more than the last 3.8%.

Overall, the USDCAD pair remains in an uptrend and most likely to trade above the 1.2750 level in the near term.

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