- US dollar after setting a short-term top against the Canadian Dollar traded lower.
- The USDCAD pair has a bearish trend line on the hourly chart, which is acting as a resistance and catalyst for a downside move.
- US MBA Mortgage Applications was published by the Mortgage Bankers Association today, which came in at 21.3%, much more than the last decline.
- Overall, the USDCAD may correct further lower, but the larger trend is still up.
The USDCAD pair after trading as high as 1.4315 started to trade lower. There is a bearish trend line on the hourly chart, which is acting as a hurdle and pushing the pair down. The pair even closed below the 50 hourly simple moving average, which is acting as a resistance now.
If the buyers manage to clear the trend line and resistance area, then the bullish trend may resume moving ahead.
On the downside, the most important support lies near the 100 hourly simple moving average at 1.4170-60.
US MBA Mortgage Applications
There was no major economic release in the US today. The only micro event was the US MBA Mortgage Applications. It was published by the Mortgage Bankers Association and highlights the mortgage applications in a particular period. The result was above the forecast, as the US MBA Mortgage Applications gained by more than 20%, which was better compared with the last decline.
Overall, the US Dollar sellers has no reason to take it down. So, it would be hard for them to take the greenback lower against the Canadian Dollar.
A break above the trend line and resistance area may release the bearish pressure. On the downside, the 100 MA might act as a support area.