On Thursday, the USD/CAD currency pair rebounded from a session low of 1.3869 to reach a new 13-day high at around 1.3926. This rise reflects strong buying momentum, as the pair now trades well above the 100-hour moving average within an ascending channel on the 60-minute chart.
The Relative Strength Index (RSI) on the 14-hour timeframe has entered overbought territory, indicating strong bullish pressure in the short term.
Contents
Key Economic Data Driving USD/CAD
United States
Recent U.S. economic indicators provided support for the dollar:
- Initial Jobless Claims: Fell to 228,000 for the week ending May 4, beating the forecast of 230,000 and down from 241,000 the week before.
- Unit Labor Costs (Q1): Rose by 5.7%, exceeding the expected 5.3%.
- Nonfarm Productivity (Q1): Dropped by 0.8%, slightly below the forecasted 0.4% decline.
- ISM Services PMI (April): Posted a reading of 51.6, beating expectations of 50.6.
- S&P Global Composite PMI: Missed the 51.2 forecast with a reading of 50.6.
- Federal Reserve Policy: The interest rate remained unchanged at 4.5%, as widely expected.
Canada
- Ivey PMI (April): Dropped to 47.9 from 51.3 in March, missing forecasts of 51.2.
- Upcoming Data: Markets await Canada’s employment change and unemployment rate figures for April, set to be released on Friday.
See more related articles:
USD/CAD Technical Analysis
Short-Term (60-Minute Chart)
- Trend: The pair remains in an ascending channel.
- Momentum: The 14-hour RSI is overbought, supporting a bullish bias.
- Targets: Bulls may aim for 1.3953 or even 1.3979. Bears could watch for pullbacks at 1.3896 or 1.3869.
Daily Chart
- Breakout: The pair has moved above a descending channel.
- RSI: The 14-day RSI bounced back from oversold levels.
- Targets: Bulls may aim for 1.4020 or 1.4105. Key support levels for bears include 1.3832 and 1.3740.
Conclusion
The USD/CAD currency pair is showing strong upside momentum fueled by positive U.S. economic data and technical signals. Traders will closely watch upcoming Canadian employment figures for further direction.
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