USDCAD Continues To Push Higher Breaking Above 1.28
Aayush Jindal
Key Highlights
US dollar continued to trade higher against the Canadian dollar, and eyes a break above 1.28.
In the US, the Net Long-Term TIC Flows was released by the US Department of Treasury, which came in at $-27.2B in January 2015.
USDCAD has a support around 1.2730 and resistance ahead at 1.2800-20.
US Net Long-Term TIC FlowsRecently, the US Net Long-Term TIC (Treasury International Capital) Flows measuring in and out flows of financial resources in the United States was released by the US Department of Treasury. The outcome was on the lower side when compared to the last revised reading of $39.2B. The US Net Long-Term TIC Flows came in at $-27.2B in January 2015. Foreign residents decreased their holdings of long-term U.S. securities in January, and as a result the net sales were $39.8 billion according to the report published.Moreover, the sum total of all net foreign acquisitions of long-term securities not including the short-term U.S. securities and banking flows was $88.3 billion in January. This was a lot better when compared to the last decline of $-176.8B. Furthermore, the net foreign private inflows were $60.7 billion.Overall, the data was better than the forecast, which helped the USDCAD pair to gain some ground earlier during the Asian session. However, other major pairs like EURUSD and GBPUSD were seen trading with a positive tone.Technical AnalysisThe USDCAD pair has a major resistance area around the 1.2800-20 levels where the pair struggled time and again to trade higher. However, there is a bullish trend line formed on the 4-hour chart, which is likely to support the pair if it moves lower from the current levels.The 23.6%% fib retracement level of the last leg from the 1.2423 low to 1.2821 high is also around the highlighted trend line. The RSI is well above the 50 level suggesting that the US dollar buyers are here to stay and might gain strength in the near term. On the upside, a break above 1.2820 might cause a strong reaction moving ahead.Canadian Manufacturing ShipmentToday, during the NY session the Canadian Manufacturing Shipment will be released by the Statistics Canada. The forecast is slated for a decline of 1.2% in January 2015, compared to the preceding month. Let us see how the USDCAD pair trades after the release.
The 23.6%% fib retracement level of the last leg from the 1.2423 low to 1.2821 high is also around the highlighted trend line. The RSI is well above the 50 level suggesting that the US dollar buyers are here to stay and might gain strength in the near term. On the upside, a break above 1.2820 might cause a strong reaction moving ahead.Canadian Manufacturing ShipmentToday, during the NY session the Canadian Manufacturing Shipment will be released by the Statistics Canada. The forecast is slated for a decline of 1.2% in January 2015, compared to the preceding month. Let us see how the USDCAD pair trades after the release.
The 23.6%% fib retracement level of the last leg from the 1.2423 low to 1.2821 high is also around the highlighted trend line. The RSI is well above the 50 level suggesting that the US dollar buyers are here to stay and might gain strength in the near term. On the upside, a break above 1.2820 might cause a strong reaction moving ahead.Canadian Manufacturing ShipmentToday, during the NY session the Canadian Manufacturing Shipment will be released by the Statistics Canada. The forecast is slated for a decline of 1.2% in January 2015, compared to the preceding month. Let us see how the USDCAD pair trades after the release.