USD/CAD stalled gains after weak IVEY PMI data
The USD/CAD failed to gain traction above 1.3220 resistance point, forming a strong downtrend after weaker than expected PMI data. Yesterday’s FOMC meeting minutes release supported the downward direction of the trend, as the USD/CAD closed below the major resistance level 1.3100. Breaking 1.3030 will ruin the pair reaching 1.3000, 1.2965 and 1.2940.
However, a bullish divergence is going to appear if the USD/CAD fails to close below 1.2980. Cutting 1.3120 foresees a larger comeback and increases to 1.3150, 1.3170 and 1.3200 respectively.
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