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USDCAD : Testing Resistance at 1.0954

(USDCAD : 4 Hour Chart)

USDCAD declined today finding resistance from 1.0954. Although there was lower than expected Canadian Building permits data but seems like downbeat US jobless claims report weighed on the pair raising concerns among investors over the job market in US. The Department of Labor in US reported that the number of individuals filing for initial jobless claims increased by 8K which economists were expecting to increase by 5K. Investors will now be focusing on tomorrow’s data for Non-farm employment change and Unemployment Rate releasing at 8:30 AM EDT. Separate report of Canada showed that the Building Permits in Canada rose 1.1% in April missing the economist’s expectation for an increase of 1.4%.

On the 4 hour chart, USDCAD currently trading in the range of 1.0954 and 1.0904. If looking at the moving averages, 50 day SMA is moving towards 100 day SMA and if it crosses above then it will signal that the pair is going to follow uptrend and might break the resistance at 1.0954. Breaking this resistance will push the upward and the next resistance would be 1.0954. However the pair is trading in the overbought zone which limits the gains of the pair.