Usd/Cad rises 0.4% amid strong U.S. new-home sales data

USDCAD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	0.4%	55.4 Pips
Week to-date	0.2%	28 Pips
April	-3.55%	-510.7 Pips

Upcoming key events (London Time)

No major events for the day.

What happened lately

The United States witnessed a significant surge in new-home sales in March, with an increase of 7.4%, a substantial rise from the 1.8% growth seen in February. This robust performance in the housing market suggests heightened consumer confidence and an improving economic landscape. Higher new-home sales often indicate stronger economic activity, as they not only reflect consumer demand but also have ripple effects on related industries such as construction, home improvements, and manufacturing of home goods. Such a positive trend can boost employment in these sectors and enhance economic output, potentially leading to a more optimistic economic outlook for the country.

For the USDCAD currency pair, the rise in U.S. new-home sales and the subsequent positive sentiment surrounding the U.S. economy can lead to improved demand for the U.S. dollar. As the U.S. economy shows signs of strengthening, the dollar becomes more attractive to investors, potentially leading to an appreciation against other currencies, including the Canadian dollar. This market dynamic was evident as USDCAD rose by 0.4% to 1.38830. In the absence of major events for the day, the positive U.S. housing data likely played a notable role in reinforcing the dollar’s strength. As traders continue to assess the implications of this data, further movements in the currency pair could be influenced by future economic indicators and the overall global financial climate.

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What can we expect from USDCAD today?

USDCAD on Wednesday rose 0.4% to 1.38830. Price is below 9-Day EMA while Stochastic is rising.

Updated daily direction for USDCAD looks bullish as the pair ended higher after Wednesday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 1.39274 with break above could target R2 at 1.39718 or figure level area. While towards the downside, we are looking at daily low of 1.37930 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.39046 may suggest continuation after recent positive movement.

For the week to-date, take note that USDCAD is mixed as compared to the prior week.

Key levels to watch out:

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