The US Dollar (USD) rose against the Canadian Dollar (CAD) on Wednesday, increasing the price of USDCAD to more than 1.3200 following some key economic releases. The technical bias may remain bullish because of the lower high in the recent downside move.
USD/CAD Technical Analysis
As of this writing, the pair is being traded around 1.3365, a resistance can be noted around 1.3435, the 23.6% Fib level resistance ahead of 1.3453, the psychological number and then 1.3663, the key horizontal resistance level as demonstrated in the given chart.
On the down, A support can be noted near 1.3294, the key horizontal support level ahead 1.3208, the 23.6% Fib level support and then 1.3146, the trendline support as demonstrated in the given above chart. The technical bias shall remain bullish unless 1.3367, the major horizontal support level remains intact.
ISMI Prices Paid News – United States
In the United States, the figure concerning the price index of ISMI remained 60.7 in November, as compared to 71.6 during the month before, down beating the economist expectation which was 69.1. The data is copied from the news released by the US Institute for Supply Management.
It shows the prevailing condition of the manufacturing market of the country. The figure is derived after taking into account various elements of the market such as new orders placed, the estimated rate of production for the future, employment rate, available inventories, and deliveries made so far.
The ISM figure is considered as a sensitive indicator of the US economy. It is also taken as an indicator of the sentiment of business concerning the inflation that may occur in a due course of time. Generally speaking, high reading in this regard is taken as a bullish trend for the US Dollar (USD) and vice versa.
Considering the overall price behavior of the pair over the last couple of days, buying the USDCAD around current levels can be a good decision in short to medium term.