USD/CAD Forecast – US Dollar Remains in Uptrend Vs Canadian Dollar

USD/CAD Forecast – US Dollar Remains in Uptrend Vs Canadian Dollar

  • – The US Dollar settled above the 1.3250 level with bullish moves against the Canadian Dollar.
  • – There is an expanding triangle forming with support at 1.3270 on the hourly chart of USD/CAD.
  • – Recently in Canada, the Retail Sales report for April 2018 was released by the Statistics Canada.
  • – The outcome was below the forecast of 0% as there was a decline in sales by 1.2% (MoM).

 

Canada’s Retail Sales

Recently in Canada, the Retail Sales report for April 2018 was released by the Statistics Canada. The market was positioned for no change in sales in April 2018 compared with the previous month.

 

However, the actual result was below the forecast of 0% as there was a decline in sales by 1.2%. Looking at the Retail Sales ex Autos, there was a decline of 0.1%, whereas the market was aligned for an increase of around 0.5%.

 

The USD/CAD pair spiked higher above the 1.3350 level, but later is corrected lower and is currently trading near the 1.3300 level.

 

USD/CAD Technical Analysis

The US dollar climbed higher from the 1.3100 swing low against the Canadian Dollar. The USD/CAD pair surged above the 1.3200 resistance and settled above the 1.3250 resistance and the 100 hourly simple moving average.

 

USD/CAD Technical Analysis US Dollar Canadian Dollar

 

The pair recently broke the 1.3350 resistance and traded towards 1.3400. However, the pair failed to break the 1.3385 resistance and declined back below 1.3300. A low was formed at 1.3268 and the pair is currently moving higher.

 

The pair is testing the 23.6% Fib retracement level of the last decline from the 1.3382 high to 1.33268 low. At the moment, it seems like there is an expanding triangle forming with support at 1.3270 on the hourly chart of USD/CAD.

 

As long as the pair is holding the triangle support and the 1.3250, it could continue to move higher. An initial resistance is near the 50% Fib retracement level of the last decline from the 1.3382 high to 1.33268 low at 1.3325. Above this, the pair may retest the 1.3350 and 1.3380 resistance levels. Supports are at 1.3270 and 1.3250.


Also published on Medium.

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