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USDCAD : Declines From 1.1268 But Still Supported, Upbeat Ivey PMI Supporting CAD

USDCAD : 4 Hour Chart

USDCAD today declined as the investors turned their attention to other country’s data after locking gains from US dollar. On the 4 hour chart, the pair found resistance at 1.1268 and declined ahead of the release of Ivey PMI data from Canada. However it still seems to be supported as following a rising channel trend and still above the rising support trend line of the channel.

The pair extended losses a little after the release of upbeat Ivey PMI data which showed that the business confidence in Canada increased to 58.6 in the month of September from the reading of 50.9 in the month of August and beating the economist’s expectation for an increase to 53.4.

The pair will test the nearest support at 1.1176 which earlier acted as resistance. The moving averages pattern is such that 100 day SMA is above the 200 day SMA and 50 day SMA is above the 100 day SMA signaling an uptrend continuation.

USDCAD : Weekly Chart

On the weekly chart, we can see that the pair is supported by a rising support trend line and will test resistance at 1.1282. The trend is signaling that the pair will broke out from this resistance once it will reach the apex of the triangle. However before that we might see some losses but the losses would be capped by the support trend line.