The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Tuesday, increasing the price of USDCAD to more than 0.2950 following some key economic releases. The technical bias remains bullish because of the higher high in the recent upside move.
USD/CAD Technical Analysis
As of this writing, the pair is being traded around 1.2992. A resistance can be noted around 1.3072, a trend line resistance level ahead of 1.3117, a major horizontal resistance and then 1.3148, the high of March 19th, 2018 as demonstrated in the given below chart.
On the downside, a support can be noted near 1.2818, the low of yesterday ahead of 1.2500, the psychological number and then 1.2482, a major horizontal support as demonstrated in the given above chart. The technical bias shall remain bearish unless it breaks the 1.3100 resistance level.
The economy lost 7,500 jobs in May as a drop in full-time employment was only partially offset by an increase in part-time jobs, Statistics Canada said Friday.
The agency reported the dip as the unemployment rate held steady at 5.8 per cent for the fourth consecutive month.
Economists had expected an increase of 17,500 jobs, according to Thomson Reuters Eikon.
Average hourly wages, a key indicator watched by the Bank of Canada, increased 3.9 per cent compared with a year ago, the monthly reading’s largest annual increase since April 2009.
Considering the overall price behavior of the pair over last couple of days, selling the USDCAD around current levels can be a good decision in short to medium term.