USD/CAD Gains Higher, Next is US Gross Domestic Product Report
- From the 1.3200 support region, USD/CAD started to rise again.
- On the 4-hours chart, it broke over a significant negative trend line with resistance close to 1.3375.
- Prior to the announcement of the US GDP report, the EUR/USD and GBP/USD exchange rates both corrected gains.
- In Q3 2022, the US GDP could increase by 2.6%. (Preliminary).
Technical Analysis of USD/CAD
When compared to the Canadian Dollar, the US dollar found support close to the 1.3220 mark. USD/CAD continued to trade favorably and began a new uptrend over the 1.3300 resistance
The pair was able to break over the 1.3350 resistance area and the 100 simple moving average, according to the 4-hours chart (red, 4-hours). A significant negative trend line with support near 1.3375 was also broken above.
The pair crossed above the 50% Fib retracement level of the decline from the swing high of 1.3808 to the low of 1.3227. The 200 simple moving average and the 1.3520 level were briefly broken (green, 4-hours).
The pair is encountering resistance near the 1.3585 level on the upswing. It is close to where the negative movement from the 1.3808 swing high to the 1.3227 low is 61.8% Fibonacci retracement level.
Near 1.3670 may serve as the next significant obstacle. Any further gains might lay the stage for a move in the direction of the 1.3800 resistance region.
The 1.3480 level serves as a temporary support. Near the 1.3400 zone and the 100 simple moving average is the next significant support (red, 4-hours). The pair may move near the 1.3250 support area if there are any additional losses.
In terms of EUR/USD, the pair was unable to move over the 1.0480 resistance and soon began to reverse downward.
Economic News To Trade Today
- US ADP Employment change April 2022- Forecast 200k, versus 239k previous
- The US Gross Domestic Product for Q3 2022(preliminary) – Forecast +2.6% versus 2.6% previous
- The Euro zone CPI forecast for November 2022(YoY): +10.4%, versus +10.6% previous.
Author: Amogo Solomon
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