FXOpen
The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Friday, increasing the price of USD/CAD to more than 1.3350 ahead of the US initial jobless claims news. The technical bias remains bullish because of a higher high in the recent upside move.
Technical Analysis
As of this writing, the pair is being traded around 1.3373. A hurdle can be seen near 1.3390, the trendline resistance area as marked with red color in the given below daily chart. A break and daily closing above the 1.3390 resistance shall trigger fresh buying pressure, opening door for a move towards the 1.3600 resistance, the high of 28th December, 2016 as marked with red box in our chart.
On the downside, a support may be seen near 1.3363, the trendline support area as demonstrated with pink color in the given above daily chart. Not to mention, 1.3363 is also the 50% fib level support zone. A break and daily closing below the 1.3363 support shall incite renewed selling interest, validating a move towards 1.3067 which is another critical support zone. The technical bias shall remain bullish as long as the 1.3067 support zone is intact.
US Initial Jobless Claims
The number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly, official data showed on Thursday. In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose to a seasonally adjusted 258K, from 243K in the preceding week whose figure was revised up from 241K. Analysts had expected initial jobless claims to fall to 240K last week.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Latest from Forex Analysis
Latest articles
Since the Start of the Week, Brent Oil Price Has Dropped over 4%
At the beginning of the week, March 15, we wrote that the price of Brent oil could form a correction from the resistance level of USD 91 per barrel. Since then, the price has decreased by more than 4% due
Fair Value Gaps vs Liquidity Voids in Trading
Understanding fair value gaps and liquidity voids is essential for traders seeking to navigate the complexities of the financial markets. These concepts, deeply rooted in the Smart Money Concept (SMC), provide valuable insights into the dynamics of supply and demand,
UK100 Share Index Rises as UK Inflation Slows
Yesterday, the UK Office for National Statistics (ONS) reported that the CPI stood at 3.2% in March. According to ForexFactory, analysts expected 3.1%, and a month ago the index was 3.4%.
Grant Fitzner, chief economist at the