- – The US Dollar struggled lately against the Canadian Dollar, and declined below 1.3460.
- – There is a major contracting triangle pattern formed with support at 1.3430 on the hourly chart of USD/CAD.
- – Recently in Canada, the Ivey PMI (s.a.) for May 2017 released by the Richard Ivey School of Business posted a decline from 62.4 to 53.8.
Canada’s Ivey PMI
Recently in Canada, the Ivey PMI (s.a.) for May 2017 was released by the Richard Ivey School of Business. The market was positioned for a minor decrease from the last reading of 62.4 to 62.0.
However, the actual result was disappointing, as there was a decline to 53.8, and Ivey PMI just managed to post an expansion. The Ivey Employment Index was down from the last reading of 53.7 to 50.4, and Prices Index was down to 51.3 from 70.9. On the other hand, the Ivey Inventories Index posted a rise from 46.5 to 56.5.
The result was not what the market expected, which means there is a chance of a bounce towards 1.3455 in USD/CAD in the near term.
USD/CAD Technical Analysis
The US Dollar maintained a bearish bias against the Canadian Dollar and traded below the 1.3480 and 1.3460 support levels. The USD/CAD pair even moved below the 100 hourly simple moving average to trade towards the 1.3435 support zone.
At present the pair is following a major declining contracting triangle pattern formed with support at 1.3430 on the hourly chart. There is a crucial support area near 1.3430-40, which stopped downsides earlier as well. The pair is currently recovering, and attempting a close above the 38.2% Fib retracement level of the last decline from the 1.3486 high to 1.3435 low.
It won’t be easy for buyers to push the pair above the contracting triangle resistance at 1.3460. It also coincides with the 50% Fib retracement level of the last decline from the 1.3486 high to 1.3435 low. However, the 1.3430 support holds the key. As long as there is no break below 1.3420-00, the pair may attempt an upside break above the 1.3460 resistance to start a substantial recovery towards 1.3500.Tags: Canadian Dollar, US Dollar, USD/CAD Technical Analysis