- The US Dollar climbed higher recently and moved above the 1.3520 resistance against the Canadian Dollar.
- There is an expanding triangle pattern with resistance at 1.3580 formed on the hourly chart of USDCAD, which is acting as a consolidation pattern.
- Recently in Canada, the Wholesale Sales for Feb 2017 (MoM) released by the Statistics Canada posted a decline of 0.2%, less than the forecast of -1%.
USDCAD Technical Analysis
The US Dollar popped higher this week and settled above a major resistance at 1.3500-20 against the Canadian Dollar, opening the doors for more gains.
The USDCAD pair traded as high as 1.3572 before it faced resistance for a minor correction. It moved down, and traded below the 23.6% Fib retracement level of the last wave from the 1.3496 low to 1.3572 high.
Later, the pair tested the 1.3550 support and the 38.2% Fib retracement level of the last wave from the 1.3496 low to 1.3572 high where it found buyers.
USDCAD Hourly Chart
At the moment, there is an expanding triangle pattern with resistance at 1.3580 formed on the hourly chart.
It may provide us the next move, and the pair is currently attempting an upside break above 1.3570-80.
However, it won’t be easy. On the other hand, a downside break below 1.3550 could ignite further declines may be towards the all-important 1.3520 support.
The hourly RSI of USDCAD is currently flat around 67.
Fundamentals – Canadian Wholesale Sales and US New Home Sales
Recently, Canada saw the release of the Wholesale Sales for Feb 2017 (MoM) by the Statistics Canada. The forecast was slated for a decline of 1% in Wholesale Sales in Feb 2017, compared with the previous month.
However, the actual result was above the forecast, as the Wholesale Sales declined 0.2%. However, it was still negative, a lot lower when compared with the last rise of 3.3%.
The report stated that the “personal and household goods subsector recorded the largest decline in dollar terms in February, down 1.7% to $8.3 billion, as sales decreased in five of six industries in that subsector”.
Later today, the US New Home Sales figure for March 2017 will be released by the US Census Bureau with forecast slated for a decline of 0.5%. If the actual result is better, the USDCAD pair may break the 1.3570-80 resistance for more gains.