USDCAD Technical Analysis – April 02, 2021

The U.S. Dollar (USD) rose against the Canadian Dollar (CAD) on Friday, increasing the price of the USDCAD pair to more than 1.2500, ahead of the release of U.S. ISM Services PMI news. The technical bias remains bearish because the pair printed a lower high in the recent upside move. 

Technical Analysis 

As of this writing, the USDCAD strengthens around 1.2544. The pair might face some resistance near the listed price levels. 

Resistance 

1.2576 – the upper trendline arm

1.2600 – the psychological number

1.2674 – the Fibonacci retracement (38.2%)

On the downside, the pair might find some support near the listed price levels. 

Support 

1.2512 – the low of March 23, 2021

1.2459 – the horizontal support

1.2473 – the psychological level

U.S. ISM Services PMI News 

The Institute for Supply Management (ISM) is scheduled to release numbers for the U.S. ISM Services PMI news on April 05, 2021. Economists expect the ISM Services PMI data to improve with a reading of 57.4 in March, as compared to the reading of 55.3, in the month before. 

The ISM Services PMI reflects the business conditions of the non-manfacturing sector of United States. Generally speaking, a high reading indicates a bullish trend for the USDCAD pair and vice versa. 

Conclusion 

Considering the price movement of the USDCAD pair over the past few days, selling the pair around 1.2554 might help to make some short-term profits.