Sasha Singh
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USDCAD : Broke Down From Consolidation Triangle

USDCAD broke down today from the consolidation triangle after the release of upbeat trade balance data from Statistics Canada. According to the data, Canada’s trade surplus with the world widened from $1.8 billion in June to $2.6 billion in July. Canada’s merchandise exports increased by 1.4% in July while the imports edged down .3%. Increase in exports were led by motor vehicles and parts. 

A separate report showed that the private sector employment increased by 204K in August on a seasonally adjusted basis which economists were expecting to increase to 218K. 

USDCAD : 4 Hour Chart

Canadian dollar found some strength after the data and thus USDCAD broke the support trend line breaking the next nearest support at 1.0859 also. The next support for the pair is at 1.0826. USDCAD however was not able to hold losses and immediately moved back towards the support at 1.0859. If the pair is not able to hold above this support, it might act as resistance now.

USDCAD : Daily Chart

On the daily chart, the pair seems like testing the key support at 1.0820 and 50 day SMA acting as support. So it still seems supported and bullish bias still exists on the pair.