Key Points
- The US Dollar is gaining pace and is currently well above the 1.2800 handle against the Canadian Dollar.
- There is a major ascending channel forming with support at 1.2810 on the hourly chart of USDCAD.
- Recently in the US, the Housing Price Index for Sep 2017 was released by the Federal Housing Finance Agency.
- The outcome was below the market forecast of +0.6% s there was a rise in the index of 0.3% (MoM).
USDCAD Technical Analysis
The US Dollar made good ground recently and traded above 1.2800 against the Canadian Dollar. The USDCAD pair was able to break the 1.2750 and 1.2780 resistance levels to settle above the 21 hourly simple moving average.
The pair traded as high as 1.2825 recently and corrected towards the 23.6% Fib retracement level of the last wave from the 1.2755 low to 1.2825 high. It seems like the pair is following a major ascending channel with support at 1.2810 on the hourly chart.
As long as the pair is above the 1.2810-1.2800 support area, it might continue to move higher towards 1.2850 in the near term.
US Housing Price Index
Recently in the US, the Housing Price Index for Sep 2017 was released by the Federal Housing Finance Agency. The market was looking for the index to rise by 0.6% in Sep 2017 compared with the previous month.
The actual result was below the market forecast of +0.6% s there was a rise in the index of 0.3%. This was also lower than the last revised increase of 0.8%. The report added that:
U.S. house prices rose 1.4 percent in the third quarter of 2017 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). House prices rose 6.5 percent from the third quarter of 2016 to the third quarter of 2017. FHFA’s seasonally adjusted monthly index for September was up 0.3 percent from August. .
Overall, the USDCAD pair is supported on the downside and it will most likely move above 1.2830 in the near term.
