- The US Dollar fell sharply from 1.3792 to 1.3638 against the Canadian Dollar before finding support.
- The USDCAD pair is currently recovering, but facing a major bearish trend line with resistance near 1.3700 on the hourly chart.
- In the US, the NFIB Business Optimism Index for April 2017 released by the NFIB Research Foundation posted a decline from 104.7 to 104.5.
USDCAD Technical Analysis
The US Dollar was in an uptrend against the Canadian Dollar until it faced resistance near 1.3800. Later, the USDCAD pair fell sharply and moved by more than 100 pips from 1.3792 to 1.3638.
The 1.3640 support area somehow prevented further declines, and helped pair in consolidating.
Later, the pair started a recovery, and traded above the 38.2% Fib retracement level of the last decline from the 1.3792 high to 1.3638 low.
USDCAD Hourly Chart
However, the upside move found resistance near a major bearish trend line with resistance near 1.3700 on the hourly chart.
The pair was also not able to settle above the 50% Fib retracement level of the last decline from the 1.3792 high to 1.3638 low.
It looks like the pair is still struggling and may move down once again towards 1.3650 or even 1.3635. Only a break and close above 1.3700 could ignite a bullish trend for a move towards 1.3760 in the near term.
NFIB Business Optimism Index
Today in the US, the NFIB Business Optimism Index for April 2017 was released by the NFIB Research Foundation. The market was expecting the index to drop from 104.7 to 104.0.
The actual result was better than the forecast, as the NFIB Business Optimism Index declined by 0.2 pts to 104.5 in April 2017. However, there was a sharp decline in expectations for future business conditions, as it decreased by eight points.
Commenting on the data, the NFIB President and CEO, Juanita Duggan, stated:
Small business owners were measurably shaken when Congress failed to address one of their most important concerns. Obamacare has crushed small businesses. Small business owners expected the White House and Congress to address that problem. Their failure to do so caused volatility in the Optimism Index.
Overall, it might not be easy for the USDCAD pair to break the 1.3700 resistance, and may retest 1.3650.