USD/CAD Targets Further Gains, United States GDP Release Next
- USD/CAD picked its speed and tested the resistance around 1.3060.
- On the 4-hours chart, a significant bullish trend line is developing with support close to 1.2965.
- The EUR/USD and GBP/USD remain vulnerable to further declines.
- In Q2 2022, the US GDP may decline by 0.8 percent (Preliminary).
Technical Analysis of USD/CAD
When compared to the Canadian Dollar, the US Dollar established a base above the 1.2740 mark. To enter the positive zone, USD/CAD rose over the resistance levels of 1.2880 and 1.2900.
On the chart for the past four hours, the pair has stabilized above the 1.2900 area, the 100 simple moving average (red, four hours), and the 200 simple moving average (green, 4-hours). Even the 1.3000 resistance zone was broken by the pair.
The bears were active, though, close to the 1.3060 zone. Near 1.3063, a peak was created, and the pair then began to adjust downward. A move below the 1.3000 support occurred.
The bulls were active above 1.2950, and the pair even traded below 1.2980. On the same chart, a significant bullish trend line is also developing, with support located close to 1.2965. The pair may drop towards the 1.2880 support and the 100 simple moving average if the downward trend line is broken (red, 4-hours).
However, the pair could move back above 1.3040 and it is encountering resistance near the 1.3060 level on the upswing. Close to the 1.3120 level comes the next significant obstacle. The pair may rise higher toward the 1.3200 level if there is a clear move above the 1.3120 barrier.
Regarding the EUR/USD pair, losses may continue below 0.9900 as the pair is still below the parity level. GBP/USD may also fall below the 1.1720 support.
Economic News to Trade Today
- German IFO Business Climate Index for August 2022 is predicted to be 86.8, down from 88.6 in the previous forecast.
- The US Gross Domestic Product for the second quarter of 2022 is -0.8%, down from the previous -0.9%.
- US Initial Jobless Claims: 253K expected, up from 250K previous
Author: Amogo Solomon
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