USDCAD – US Dollar at Potentially Significant Turning Point

August 2, 2016

Check out the possible market impact of the two major upcoming News releases, U.S Personal Income & Australian Building Permits.

And current market sentiment on USDCAD.

This article is originally referred from TitanFX Market Analysis

KEY HIGHLIGHTS

  • The US Dollar recently traded as low as 1.30 against the Canadian dollar where it found buyers.
  • Before the downside move, the USDCAD pair broke a support trend line on the 4-hours chart.
  • Today, the US Personal Income will be released by the Bureau of Economic Analysis, Department of Commerce, which is forecasted to rise by 0.3% in June 2016.
  • In Canada, the RBC Manufacturing PMI will be released by RBC.

USDCAD TECHNICAL ANALYSIS

The US Dollar after trading below the 100 simple moving average (H4) found support and recovered. The USDCAD is currently trading near a broken support area, which is acting as a resistance zone.

USDCAD – US Dollar at Potentially Significant Turning Point

There was a major bullish trend line formed on the 4-hours chart, which was cleared recently. The same trend line is currently acting as a resistance.

Moreover, the 50% Fib retracement level of the last drop from the 1.3252 high to 1.30 low is also positioned around the same resistance. So, it may be difficult for the bulls to break it and take the pair further higher.

US PERSONAL INCOME

Today in the US, the Personal Income, which measures the total income received by individuals, from all sources including wages and salaries, interest, dividends and others will be released by the Bureau of Economic Analysis, Department of Commerce.

The forecast is slated for an increase of 0.3% in the Personal Income in June 2016, compared with the previous month. Moreover, the Core Personal Consumption Expenditure is forecasted to increase by 0.1% in June 2016, compared with the previous month.

There are a few other releases as well, which may impact the US Dollar in the short term.

AUSTRALIAN BUILDING PERMITS

Today in Australia, the Building Permits, which shows the number of permits for new construction projects was released by the Australian Bureau of Statistics. The forecast was slated for an increase of 0.5% in June 2016, compared with the previous month.

However, the result was negative, as the Building Permits declined by 2.9% in June 2016. In terms of the yearly change, there was a decline of 5.9%. The report stated that the “trend estimate of the value of total building approved rose 1.2% in June and has risen for six months. The value of residential building rose 0.1% and has risen for seven months. The value of non-residential building rose 3.7% and has risen for four months”.

The AUDUSD pair was seen heading lower after the release, and may continue to move down.

Original Source: TitanFX Market Analysis

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