USDCAD downside prevails
Gary Christie August 24, 2020 10:17 PM
The USD gained ground on Monday however the USD/CAD bearish trend remains in play.
The US Dollar was bullish against all of its major pairs on Monday. On the U.S. economic data front, no major economic data was released.
On Tuesday, the Conference Board's Consumer Confidence Index for August is expected to rise to 93.0 on month, from 92.6 in July. Finally, New Home Sales for July are expected to increase to 790K on month, from 776K in June.
The Euro was bullish against most of its major pairs with the exception of the AUD, CHF and USD. In Europe, no major economic stats were released.
The Australian dollar was bullish against all of its major pairs.
The USD/CAD was the biggest currency pair mover on Monday gaining 47pips to 1.3224. The day's range was 1.3135 - 1.3238 compared to 1.3159 - 1.3234 in the previous session.
Looking at the chart, the USD/CAD remains inside a bearish channel. The pair broke key support at the $1.332 area which was resistance back in 2019. The MACD is also trending lower indicating downside momentum. Look for a continuation lower to test Jan lows near $1.2955 unless the pair can make a reversal above the upper declining trend line and the 20-day moving average.
Source: GAIN Capital, TradingView
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