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USDCAD : Sellers Creating Pressure Keeping Bulls on Side

USDCAD : 4 Hour Chart

USDCAD has shown some major move after the mixed US data. On the 4 hour chart, the pair declined from the key resistance at 1.0984. Although it tried to move above this resistance for once but it was not able to hold above this resistance. There was a rising support trend line on the chart which was preventing the pair to decline below it but seems like investors only reacted to the Core Durable Goods Orders which showed a disappointing -.8% decline. This reversal of the pair is showing that the investors disagrees on the US dollar current level and thus sellers took control while bulls continue to watch from side until the GDP ,Unemployment and Home Sales data come out on Thursday.

On the 4 hour chart, we can see that the pair is currently testing support at 1.08890. The pair extended losses breaking below the rising support trend line and below the key support at 1.0929. If the pair continue to rise from the support at 1.0889 it might find resistance from the previous support at 1.0929. Breaking above this resistance will only bring back the bullish bias on the pair.

USDCAD : Daily Chart

On the daily chart, the pair still seems to be trading within the range of 1.0984 and 1.0889 and showing a sideways trend. A break below the 50 day SMA will bring the bearish bias back to the pair until then the bullish bias on the pair still exists.