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The FxPro Analyst Team

Forex: USDCAD Tests Major Resistance

USDCAD has been bullish since the early September, as the recent US economic data outperforms.

Yet the price is trading below the mid-term resistance level at 1.3300, the selling pressure at this level is very heavy, the price will likely pull back at this zone.

In addition, the daily Stochastic Oscillator is around 80, suggesting a retracement.

The resistance level is at 1.3300, followed by 1.3350 and 1.3400.
The support line is at 1.3250, followed by 1.3200 and 1.3150.

Keep an eye on the Canadian Housing Starts (YoY) for September, to be released tomorrow at 12:15 GMT. Also the US Labour Market Conditions Index, to be released tomorrow at 14:00 GMT. They will influence the trend of USDCAD.

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This morning we saw the release of a set of German economic figures for August. The Trade Balance, rose to 22.2 billion, from 19.4 in July. Exports (MoM) was up to 5.4%, from -2.6% in July. Imports (MoM) was also up to 3.0%, from -0.7% in July. Yet the Current Account fell to 17.9 billion, from 20.2 in July. As a whole, the figures beat expectations.

DAX index has been oscillating in a range bound between 10250 and 10780 since August.

It is trading between the downtrend line resistance, and the near term major support at 10450, where is providing a stronger support. A consolidation pattern has been formed.

Keep an eye on the ZEW Survey and Economic Sentiment figures, to be released tomorrow at 09:00 GMT. It will likely influence the trend of the DAX index. With better-than-expected readings, DAX will likely break the resistance level at 10520. With lower-than-expected readings, DAX will likely test the support line at 10450.

The 4 hourly Stochastic Oscillator is below 30, suggesting a rebound.

The resistance level is at 10520, followed by 10580 and 10650.
The support line is at 10450, followed by 10350 and 10250.

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