USDCAD losing key support

The pair is attempting to break below 3 month long consolidation.

Charts (6)

The US Dollar was bullish against most of its major pairs on Monday with the exception of the CAD and GBP. On the US economic data front, Market News International's Chicago Business Barometer dropped to 58.2 on month in November (59.0 expected), from 61.1 in October. Finally, Pending Homes Sales declined 1.1% on month in October (+1.0% expected), compared to a revised -2.0% in September.    

On Tuesday, Markit's US Manufacturing Purchasing Managers' Index for the November final reading is expected to remain at 56.7 on month, in line with the November preliminary reading. Finally, Construction Spending for October is expected to rise 0.8% on month, compared to +0.3% in September.    

The Euro was bearish against most of its major pairs with the exception of the AUD and JPY. In Europe, the German Federal Statistical Office has posted November CPI at -0.8% (vs -0.4% expected). Also, the Bank of England has released the number of mortgage approvals for October at 97,500 (vs 84,000 expected).

The Australian dollar was bearish against all of its major pairs

We have been watching the USD/CAD pair closely over the last week. The pair has now broken below support at 1.299 after consolidating since September. It is looking like the downtrend that began back in March is about to continue. We would prefer to see some more downside momentum before we can rule out any potential continuation of the consolidation. Traders will be watching how price action reacts around the 1.30 level. The next major support area is at 1.2805. 

Source: GAIN Capital, TradingView

More from Forex

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.