In Asian trading on Thursday, USD/CAD recovers losses after yesterday's decline and trades around 1.3620.
Yesterday in the United States business activity indexes were released. According to ISM, manufacturing activity rose from 47.4 to 47.7 points in February, while the calculation was 48.0. According to S&P Global, the index declined from 47.8 to 47.3 p. In Canada, the S&P Global business activity index rose from 51.0 to 52.4 p. with the forecast of 50.1 p.
Some pressure on the Canadian dollar continues to come from Canada's fourth-quarter GDP data, which showed a sharp slowdown from 2.3% to 0.0%.
USD/CAD Technical analysis
Technical indicators, candlestick patterns and chart patterns suggest a continuation of the upward movement. Thus, the Bollinger Bands are confidently directed upward, the MACD indicator is in the positive range and has a weak buy signal. Stochastic Oscillator is flying slightly below the 80% level.
After the pair has consolidated above 1.3650, we will go back to buy with Take Profit at 1.3750. Stop-loss is taken out at 1.3600.
If the price falls below support at 1.3600, we start selling with the nearest target at 1.3500. We place a stop loss at 1.3650.