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1 Jun 2015
ISM Reaction: USDCAD jumps to test 1 ½ month highs
FXStreet (Orlando) - The US Dollar is trading higher against the Canadian Dollar following the better than expected US ISM manufacturing data. After jumping 70 pips from 1.2460, the USD/CAD jumped to test highs since April 15 around 1.2540.
The US ISM manufacturing index reported an increase to 52.8 in May from 51.5 in April. A better number than previously expected of 52.0. ISM manufacturing index rose mostly driven by new orders that jumped to its highest since November.
Currently, USD/CAD is trading at 1.2532, up 0.63% on the day, having posted a daily high at 1.2538 and low at 1.2438. The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish.
USD/CAD forecast
According to Anil Panchal from Admiral Markets, "Strong US numbers and reversal from 1.1900 region support USDCAD up-move." In the same line, Richard Perry from Hantec Market affirmed in the FXStreet USDCAD Forecast Poll that the "strengthening of the US dollar has improved the outlook once more and resumed the bullish long term trend. This could though still be part of a developing sideways band since early 2015."
USD/CAD levels
If the pair extends gains above 1.2540, it will find resistances at 1.2575 and 1.2600. To the downside, supports are at 1.2465, 1.2450 and 1.2415.
The US ISM manufacturing index reported an increase to 52.8 in May from 51.5 in April. A better number than previously expected of 52.0. ISM manufacturing index rose mostly driven by new orders that jumped to its highest since November.
Currently, USD/CAD is trading at 1.2532, up 0.63% on the day, having posted a daily high at 1.2538 and low at 1.2438. The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish.
USD/CAD forecast
According to Anil Panchal from Admiral Markets, "Strong US numbers and reversal from 1.1900 region support USDCAD up-move." In the same line, Richard Perry from Hantec Market affirmed in the FXStreet USDCAD Forecast Poll that the "strengthening of the US dollar has improved the outlook once more and resumed the bullish long term trend. This could though still be part of a developing sideways band since early 2015."
USD/CAD levels
If the pair extends gains above 1.2540, it will find resistances at 1.2575 and 1.2600. To the downside, supports are at 1.2465, 1.2450 and 1.2415.