- US Dollar continued to outpace the Canadian Dollar, as it continued to trade higher.
- The USDCAD pair managed to break an important resistance trend line on the hourly chart, which was a bullish call for buyers.
- Today in the US, the labor market conditions index (LMCI) was released, which came in at 0.5 in November 2015, down from the last reading of 1.6.
- In the Euro Zone, the Sentix Investor Confidence posted an increase from the last reading of 15.1 to 15.7 for December 2015.
The USDCAD pair climbed higher this past week, and continued the momentum this week. There was an upside reaction, taking the pair above a bearish trend line on the hourly chart.
The pair traded as high as 1.3508, and currently signaling a chance of a minor correction moving ahead. An initial support on the downside is around the 23.6% Fib retracement level of the last leg from the 1.3318 low to 1.3508 high.
On the upside, a break above the last swing high of 1.3510 may take pair towards 1.3540.
US labor market conditions index (LMCI)
Today, the US labor market conditions index (LMCI), which is the primary source of common variation among 19 labor market indicators was released. The market was not expecting any major increase in the index, but the outcome was on the lower side. The labor market conditions index decreased from 1.6 to 0.5 in November 2015.
In the Euro Zone today, the Sentix Investor Confidence, i.e. a monthly survey which shows the market opinion about the current economic situation was reported. It posted an increase from the last reading of 15.1 to 15.7 for December 2015, but failed to help the Euro.
Overall, the USDCAD pair is in an uptrend and may continue to trade higher in the near term. Buying dips favored.