USDCAD Breaks Above the 50 Day MA
USDCAD trades 0.13% higher at 1.3210 rebounding from daily lows at 1.3209 after US monthly CPI came in at 0.1% in August matching forecasts; the yearly reading came in at 1.7% below analyst’s expectations. The Initial Jobless Claims came in at 204K below forecasts of 215K on September 6. Canadian housing data disappointed as the New Housing Price Index (year over year) came in at -0.4% in July from previous -0.2%.
USDCAD formed a strong support zone at 1.3134 which tested successfully for three days in a row, and today the pair breached above the 50-day moving average at 1.3198, and now the bulls target the next resistance at 1.3277 the 100 day moving average. On the downside immediate support for the pair stands at 1.3176 daily low while more bids will emerge at 1.3104 the low from July 31st.