USD/CAD: correction before further growth
By Elizabeth Belugina
USD/CAD edged up to the new high at 1.1222.
Analysts at SEB Bank point out that the trend-following tools favor further upside after a short dip. After some correction it might be easier for the bulls to overcome resistance in the 1.1224/37 area and at 1.1256 ahead of 1.1278.
The picture on H4 points at the coming correction down: the latest high isn’t confirmed by MACD, and the pair recoiled down from the upper Bollinger band. USD/CAD may dip to 1.1170. Further support is at 1.1130 and 1.1100.
Yesterday Canada released weak data: monthly GDP growth slowed down to 0.0%. The market’s now focused on the US data: ADP Non-Farm Employment Change (12:15 GMT) and ISM Manufacturing PMI (14:00 GMT).