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by FXOpen on June 3, 2019

USD/CAD: pullback of the 5-month old resistance line as WTI slowed down

On Friday, May 31, Statistics Canada reported that “Real gross domestic product (GDP) grew by 0.1% in the first quarter, compared with the fourth quarter of 2018,” which is less than predicted. The annualized rate rose to 0.4%, but did not meet the analysts’ estimate of 0.7%.

On Monday, the pullback of the USD / CAD pair to the value of 1.3510 is caused by a decrease in the dynamics of decline in WTI and the weakness of the US dollar relative to other currencies. It is necessary to monitor the production of PMI in order to catch the fresh momentum in the market.

USD/CAD Technical Analysis 03rd June 2019

The US Dollar traded towards the 1.3560 level against the Canadian Dollar before starting a downside correction. The USD/CAD pair declined below the 1.3520 support level to move into a bearish zone.

There was a break below a major bullish trend line with support at 1.3518 on the hourly chart. Besides, there was a close below the 1.3520 support and the 50 hourly simple moving average. The pair even spiked below the 1.3500 level and traded as low as 1.3491.

USDCAD-Chart

If there is an upside correction, the recent support near the 1.3520 level and the 50 hourly SMA is likely to act as a resistance.

Moreover, the 50% Fib retracement level of the recent decline from the 1.3564 high to 1.3491 low is also near the 1.3520 level. On the downside, a break below the 1.3490 level might push the pair towards 1.3460.

By FXOpen

FXOpen is a Forex and Cryptocurrency broker founded in 2005 by a group of traders. With over 10 years of experience, the company has established itself as a major Forex broker that continues to expand rapidly across the globe. FXOpen offers the MT4 and MT5 Forex trading platform with a wide range of trading instruments including 100+ FX, CFDs, Indices and Cryptocurrency markets. FXOpen also provides its own PAMM technology allowing clients to benefit from the strategies of professional traders with a proven track record of successful trading. The FXOpen Group also includes the ASIC regulated FXOpen AU in Perth Australia and the London-based FXOpen UK that is regulated by the FCA.

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