FX.co ★ Technical analysis of USD/CAD for August 03, 2015

USD/CAD

Friday's weak US data failed to change the structural bullish market. Lower oil prices influence the CAD pushing it to the lower levels.

IMPACT ON USD:

Compensation costs for civilian workers was little changed at 0.2 percent, seasonally adjusted, for the 3-month period ending June 2015, as the US Bureau of Labor Statistics reported Friday.

Traders eye US ISM manufacturing today.

In May 2015, this pair started moving higher. It closed 5% higher in July. The pair managed to close above 1.3063.

Before further move up, we expect the price to correct a bit. The nearest resistance is seen at 1.3180. A daily close above 1.3180 will enable bulls to charge towards 1.3260 and 1.3320 in the extreme case. Monthly resistance is seen at 1.3180 and 1.3380. In all time frame, intervals oscillators are overbought.

Review: we forecasted on Friday: " Today's spike is likely to hit 1.3100 or even 1.3120" an the pair reached a high of 1.3097.

The pair is expected to hit 1.3150 or 1.3170 today.

Sell below 1.3060. Overbought indicators favor selling at higher levels.