Sasha Singh
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USDCAD : Continue to Be Supported, However Gains Are Limited

USDCAD : Daily Chart

USDCAD broke down from the rising channel after the demand for US dollar weakened yesterday following the FOMC meeting minute’s release. On the daily chart, there is another rising support trend line which continue to support the pair. The immediate support for the pair right now is at 1.1088 and the pair might rise from this level. If the pair continues to decline the next nearest support it may find is at 1.0985. 

On the fundamentals side, USD found support after the release of U.S. jobless claims data which showed that the number of individuals filing for initial jobless benefits in the week ending October 4 decreased by 1000 to 287K form the previous week’s revised reading of 288K which economists were expecting to rise by 6K to 294K. However the gains remain capped as the Fed eased the concerns over the timing of interest rate increase.

USDCAD : 4 Hour Chart

On the 4 hour chart, we can clearly see that the pair is currently testing the key support at 1.1088 and might rise from this as according to the stochastic oscillator the pair is in the oversold zone. However the pair might find resistance from 1.1134 which earlier acted as support for the pair. A decline below the 200 day SMA might show some bearish trend otherwise the pair still in the bullish zone.