USD/CAD: Technical Outlook

USDCAD trading near three week low as easing tensions over the probable US military strike on Syria as well as improving Chinese economic indicators boosted demand for riskier assets.

On Monday, Canadian Building Permits and Chinese CPI induced the pair to start this week in continuation of the last week’s decline.

On Tuesday, Chinese Industrial Production and Retail Sales ignored the weaker CAD Housing Starts. The pair tested the lowest level in three weeks.

On Wednesday, the pair is trading near 1.0355, a break below ascending trend line connecting lows of 1.0012 and 1.0244.

From the current level, the pair expected to test 1.0300 – 1.0297 support zone (61.8% Fibonacci Retracement Level of its 1.0850 to 0.9405 downturn), breaking which the pair can test 1.0230 -1.0220 important support zone (including one year old ascending trend line connecting lows of 0.9632 and 1.0012).

If the pair continues to trade below 1.0230 – 1.0220, it is vulnerable to test April low of 1.0012 with 1.0130 – 1.0125 being intermediate support zone (including 50% Fibonacci Retracement Level).

On the upper side, the pair is witnessing immediate resistance zone of 1.0370 – 1.0390 (including 100-day SMA and ascending trend line connecting lows of 1.0012 and 1.0244), breaking which the pair is expected to test 1.0440 – 1.0450 resistance zone.

Given the sustained trading above 1.0450, USDCAD is vulnerable to head towards 1.0550 with 1.0510 being intermediate resistance level.

• Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/