USD/CAD breaks above key 1.3250, tests 1.3300
- US Dollar gains momentum after US data.
- USD/CAD trades at three-week highs, risks tilted to the upside.
The USD/CAD broke above 1.3250 and climbed to 1.3299, reaching the highest level since July 10. The pair has left behind several days of sideways movement between 1.3250 and 1.3150.
Economic data from the US came in mixed, with the JOLTS job openings coming in below expectations in June at 9.58 million, against a consensus of 9.62 million. The ISM Manufacturing Index PMI rose from 46 in June to 46.4 in July, below the expected 46.8.
More US labor market data is due on Wednesday, with the ADP private employment report, and later on Thursday with the weekly Jobless Claims and Unit Labor Costs. On Friday, the US and Canada will release their official employment reports.
The US dollar remains strong after the data and has climbed to fresh highs versus commodity currencies. US Treasury yields edged higher despite the fact that the economic figures did not show positive surprises.
USD/CAD levels to watch
The outlook for USD/CAD is turning bullish as the pair holds above the critical resistance area of 1.3250. While above this level, more gains seem likely. The next resistance is the 1.3300/10 area, and above that is 1.3350.
The 1.3250 zone has now become the immediate support. A slide below this level would put the pair back in the familiar range. The next support stands at 1.3195.
Technica levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
