USDCAD forecast bullish after Canadian manufacturing PMI data
Technical Analysis Summary USD/CAD: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Neutral | |
| MA(200) | Buy | |
| Fractals | Neutral | |
| Parabolic SAR | Buy |
Chart Analysis
The technical analysis of the USDCAD price chart on daily timeframe shows USDCAD,Daily is rising above the 200-day moving average MA(200) as it rebounded after hitting seven-month low three months ago. We believe the bullish momentum will continue after the price breaches above the upper bound of the Donchian channel at 1.3605. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 1.3478. After placing the order, the stop loss is to be moved to the next fractal low indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of -
Canada’s manufacturing downturn slowed in February. Will the USDCAD price continue rebounding?
Canada’s manufacturing downturn slowed in February. The S&P Global reported the Manufacturing PMI climbed to 49.7 in February from 48.3 in previous month. Readings above 50.0 indicate industry expansion, below indicate contraction. Employment rose while both output and new orders fell only slightly. However, there were further cuts to purchasing and inventories, and price trends showed an accelerated rate of cost inflation. Slowing of Canadian manufacturing activity contraction is bullish for Canadian dollar and bearish for the USDCAD. However, the current setup is bullish for the currency pair.