USDCAD - US Dollar Trend Overwhelmingly Positive

Posted By FxNewInfo.com Posted On 20 January 2016

Key Highlights            

  • US Dollar traded higher against the Canadian Dollar, and it looks like more gains are feasible.
  • USDCAD pair is testing the previous swing high of 1.4600, which is acting as a resistance.
  • There are a couple of bullish trend lines on the 4-hours chart, which is acting as a support area for the USDCAD pair.
  • Today, the US Consumer Price Index will be released by the US Bureau of Labor Statistics, which is forecasted to register no change in the December 2015, compared with the preceding month.

USDCAD Technical Analysis

The USDCAD pair enjoyed a nasty bullish run this week, as the pair traded as high as 1.4600 where it found sellers. There are a couple of bullish trend lines on the 4-hours chart, which are providing support to the pair, and can be seen as a buy area.

USDCAD  pair

On the upside, a close above the 1.4600 area may call for a move towards the 1.4640-50 levels. On the downside, the trend line support area may play a crucial role.

The 4-hours RSI is above the 50 level, which is a sign that buyers are here to stay.

US CPI

Today, there is a major release in the USD, as the Consumer Price Index, which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services will be released by the US Bureau of Labor Statistics. The forecast is slated for no change in December 2015, compared with the preceding month. Let us see how the result shapes up and whether it affects the USDCAD pair or not moving ahead. Any decline in the CPI may have push the US Dollar lower.

New Zealand CPI

Today, the New Zealand Consumer Price Index was released by the Statistics New Zealand. The forecast was slated for a decrease of 0.2% in the fourth quarter of 2015, compared with the preceding quarter. However, the outcome was disappointing, as the New Zealand CPI declined by 0.5%.

In terms of the yearly change, the New Zealand Consumer Price Index rose 0.1% in the fourth quarter of 2015, compared with the same quarter a year ago. The outcome was very disappointing, as the forecast was slated for a rise of 0.4%.

Overall, the market sentiment was favoring the US Dollar, and that is the reason why more gains in the USDCAD pair are likely.

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