USD/CAD: daily update
USD/CAD has been swinging around 1.0500 since the end of June, though the general direction of the move was to the upside from 1.0420/50 to 1.0600. At the same time, it seems that the trend’s losing strength. On H4 the Ichimoku Cloud narrowed and there’s divergence on MACD and RSI. Support is at 1.0500, 1.0450 and 1.0420 (May 29 high, June 27 low). As long as the pair remains above the latter, the outlook will remain positive. Resistance lies at 1.0540 and 1.0560 ahead of 1.0600.
Canadian dollar strengthened in the last few days amid optimism that corporate profits will top forecasts and a report showed June housing starts exceeded analysts’ estimates. In addition, the IMF raised Canada’s growth economic growth forecast for this year from 1.5% to 1.7%, but warned that overall global conditions remain uneven. Yet, the speculation about the Fed’s tapering asset purchases may support US currency.
Chart. H4 USD/CAD