The USDCAD is hovering near 1.3470 mark on Friday’s Asian period. Unable to establish a trend amidst a solid U.S dollar. Investors are waiting for the impending PCE Price Index statistics, which will be issued during the American afternoon.
The USDCAD could reach protection at the 23.6 percent retracement of Fibonacci near 1.3455 mark. Which is lined by an important mark at 1.3450. A breach beneath the support region could place stress on the duo to hit the 21 D-EMA of 1.3438 mark.
Key Highlights
USDCAD struggles to identify a path following losing ground on Yesterday.
The 23.6 percent Fib-retrace near 1.3455 with the main mark at 1.3450 could act as significant supporting points.
The technical assessment shows a rise above the psychological threshold of 1.3500 area.
Fundamental influencing factors:
Every month American building permits topped forecasts in Dec, reaching 1.46 Mil over the expected 1.426 Mil. The number of building permits (monthly) also increased, beating the consensus expectation of 1.495 Mil figure. Furthermore, initial unemployment filings for the time period ended the 12th of Jan fell to 187,000 from 203, 000 the week prior. Showing strength in the U.S. job market as a whole.
Technical Analysis
If the USDCAD duo crosses under the 21D-EMA, it may challenge the 38.2 percent retracement of Fibonacci at 1.3402 mark and psychological stability around 1.3400 area.
Nevertheless, a technical examination of the pair’s MACD suggests that the overall trend is potentially positive. This explanation relies on the line of MACD being over the center point with dispersion exceeding the signal’s level.
Furthermore, the trailing sign 14-day RSI exceeds 50. Showing affirmation of increased strength for the USDCAD duo. That might help it reach the psychological milestone of 1.3500 area.
A strong breakthrough over that level might lead bullish buyers in the USDCAD duo to aim for the weekly top. Which is around 1.3534 mark. Then the high of the month at 1.3541, before reaching the major hurdle mark at 1.3500 zone.
Daily – Technical Indicators & Signals
| Name | Value | Action |
| RSI(14) | 53.855 | Neutral |
| STOCH(9,6) | 59.611 | Buy |
| STOCHRSI(14) | 36.241 | Sell |
| MACD(12,26) | 0.001 | Buy |
| ADX(14) | 46.480 | Buy |
| Williams %R | -37.592 | Buy |
| Name | Value | Action |
| CCI(14) | 47.3841 | Neutral |
| ATR(14) | 0.0065 | Less Volatility |
| Highs/Lows(14) | 0.0000 | Neutral |
| Ultimate Oscillator | 47.640 | Sell |
| ROC | 0.910 | Buy |
| Bull/Bear Power(13) | 0.0066 | Buy |
