Vesta trader
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The US dollar traded higher against the Canadian dollar yesterday. However, the Canadian dollar sellers seem to be nervous ahead of key risk events lined up during the NY session. The Canadian consumer price index and retail sales data will be published. Both these events are likely to impact the Canadian dollar to a certain extent according to many free forex signals online. The Canadian dollar is trading higher intraday in anticipation of a better than expected outcome. The USDCAD pair broke an important support area, which is a bearish call ahead of the economic data. If the outcome stays in line with the forecast, then the pair might continue trading lower.
Technically, there was an important bullish trend line on the hourly chart for the USDCAD pair, which was breached recently. However, the pair found the 100 moving average on the downside. It looks like the pair is again trading higher and currently testing the mentioned broken trend line. It would be interesting to see whether the pair can manage to break it again to trade higher or not. If it fails to break it, then a move back towards the 100 moving average is possible in the short term. There are several support levels on the way down for the pair, starting with the 200 moving average, which also coincides with the 50% fib level of the last leg higher from the 1.0859 low.
USDCAD 08.22.2014
On the upside, initial resistance can be seen around the last swing high of 1.0985. If buyers manage to clear it then more gains are possible moving ahead.
From the Vesta Trader Blog
Technically, there was an important bullish trend line on the hourly chart for the USDCAD pair, which was breached recently. However, the pair found the 100 moving average on the downside. It looks like the pair is again trading higher and currently testing the mentioned broken trend line. It would be interesting to see whether the pair can manage to break it again to trade higher or not. If it fails to break it, then a move back towards the 100 moving average is possible in the short term. There are several support levels on the way down for the pair, starting with the 200 moving average, which also coincides with the 50% fib level of the last leg higher from the 1.0859 low.
USDCAD 08.22.2014
On the upside, initial resistance can be seen around the last swing high of 1.0985. If buyers manage to clear it then more gains are possible moving ahead.
From the Vesta Trader Blog
