USD/CAD turns resistance into support
Updated
USD/CAD trades within a bullish trend on the 4-hour chart, with yesterday’s low forming above a prior resistance level. Prices are also back above the 20-dar EMA and the weekly pivot point, so perhaps we have seen the swing low. Strong economic data from the US could send the pair higher on bets of a more aggressive Fed, with a soft GDP report for Canada also likely to be beneficial to the bullish bias of USD/CAD.
Note
So far so good. Although it is finding resistance near its cycle highs, which risks a pullback if ISM manufacturing data comes in weak later today. But if we see a surprise expansion and / or higher 'prices paid', then the dollar should remain bid as money markets bet on a higher terminal fed rate/ At which point 1.3700 comes into focus.
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