Technical analysis of USD/CAD for July 31, 2015

IMPACT
ON USD:

The GDP
value in the United States increased by an adjusted annual
rate of 2.3% in the second quarter of
2015, according to the preliminary estimate released by the Bureau of
Economic Analysis. In the first quarter,
real GDP increased by 0.6% (revised).

In the week
ending July 25, the advance figure for seasonally adjusted initial unemployment claims was
267,000 that is 12,000 higher than the print of the previous week.

CAD:The lower oil prices pressure the
CAD edge lower against USD.

Technical
view:
The pair managed to bounce from the 20DSMA after Wednesday’s
FOMC meeting. The pair has been facing strong resistance between 1.3055 and
1.3047. DUring yesterday’s session, the pair made high at 1.3044 again rejected at
higher levels. The pair breached the earlier double top on the H1 chart
which turns to support.

Today, traders are waiting for Canada’s GDP data, the reading is expected to be pessimistic. Today’s spike is likely to hit 1.3100 or even the1.3120 levels. Multiple
resistance seems at the 1.3103 levels.

Intraday
support is at 1.3000, 1.2980 and 1.2960. Resistance seems to be 1.3055, 1.3080
and 1.3120.

Selling is available only below 1.2960 aimed at 1.2940, 1.2920, and 1.2900.

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The material has been provided by InstaForex Company – www.instaforex.com

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