USDCAD confirms an intraday reversal pattern

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By :  ,  Financial Analyst

USD/CAD confirms an intraday reversal pattern

The US Dollar was bearish against most of its major pairs on Tuesday with the exception of the CAD. 

On the economic data front, Markit's US Manufacturing Purchasing Mangers' Index jumped to 49.6 on month in the June preliminary reading (50.0 expected), from 39.8 in the May final reading. New Home Sales increased to 676K homes on month in May (640K homes expected), from a revised 580K homes in April. 

On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending June 19th is expected.                                                                                                                       

The Euro was bullish against all of its major pairs. In Europe, preliminary readings of June Manufacturing PMI for the Eurozone rose from 39.4 to 46.9 (45.0 expected), Germany bounced from 36.6 to 44.6 (42.3 expected). U.K. and France posted an even better situation as they managed to post indicators above 50.0, the level above which the sector is expending. France Manufacturing PMI's jumped to 52.1 from 40.6 (46.0 expected) and the U.K. to 50.1 from 40.7 (45.0 expected). Also, preliminary readings of June Services PMI rose to 47.5 (41.2 expected), for the Eurozone, 45.8 (42.0 expected) for Germany, 51.3 (45.2 expected) for France and 47.6 (39.0 expected) for the U.K.

The Australian dollar was mixed against all of its major pairs. 

Looking at active major pairs, the USD/CAD rose 35 pips to 1.3557 in Tuesday's trading. Prices have broken above a falling wedge bullish reversal pattern. As long as the USD/CAD can remain above 1.353, look towards the 1.359 resistance level as a target. A fall below 1.353 would call for a decline towards 1.3485 support.

Source: GAIN Capital, TradingView

Happy trading.
Related tags: CAD Forex Forex USD

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