USD/CAD Exchange Rate Prediction – The Dollar Rebounds on Strong Claims Data

0
23

The USD/CAD rebounded on Thursday after hitting a 3-month low as the greenback rose against most major currencies. U.S. Treasury yields rose following a larger than expected decline in Jobless claims. Wednesday’s Stronger than expected Canadian CPI continues to buoy Canadian short-term yields.

Technical Analysis

The dollar rebounded on Thursday against the Loonie, but the downtrend remains intact.  Resistance is seen near the 10-day moving average at 1.2404. Support is seen near the July lows at 1.2308. The 10-day moving average has crossed below the 50-day moving average, which means a short-term downtrend is in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are no longer oversold as the fast stochastic is printing a reading of 24 above the oversold trigger level of 20. Medium-term momentum has turned negative the MACD (moving average convergence divergence) index generated a crossover…

Read more…