FXStreet (Barranquilla) – The USD/CAD is trading now on the positive field following the upbeat US housing data; After falling 50 pips in the European session, the US Dollar finally found buyers against the Canadian Dollar as the pair bounced off 1.2215 to price at daily highs above 1.2280.
Existing home sales rose 5.1% in May, well above expected. Annual rate is now 5.35M, the highest since August 2013. On the other hand, Europe consumer confidence was reported down to -5.6 in June; the worse since February.
Currently, USD/CAD is trading at 1.2282, up 0.12% on the day, having posted a daily high at 1.2288 and low at 1.2217. The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bullish.
USD/CAD Forecast
Anil Panchal from Admiral Markets said in the latest USD/CAD Forecast Poll that the “failure to break 1.2170-60 horizontal mark could pullback the pair towards 1.2400 region.”
In addition, according to JPMorgan, Labor market creating inflationary pressures; Fed rate hike in September; most vulnerabilities of the non-USD; and illiquidity made the case for a stronger dollar.
USD/CAD Level
If the USD/CAD manages to extend gains, resistances are at 1.2300, 1.2350 and 1.2360. To the downside, supports are at 1.2215, 1.2200 and 1.2140.
(Market News Provided by FXstreet)