USD/CAD Price Prediction – The Exchange Rate Consolidates Following Wednesday’s Slide
The USD/CAD moved sideways as dollar strength eased as U.S. yields declined. The drop in yields came following a report from the Labor Department in the U.s. that showed that initial filings for unemployment insurance totaled 419,000 for the week ended July 17, above expectations. Existing Home Sales in the U.S. rose along with the median sales price which hit a record all-time high.
Technical Analysis
The USD/CAD moved sideways, consolidating the losses experienced on Wednesday. Support is seen near the 20-day moving average at 1.2481. Target resistance is seen near the July highs at 1.2807. Short-term momentum has turned negative as the fast stochastic generated a crossover buy signal. The movement from overbought on the fast stochastic near 91, down to 74, reflects accelerating short-term negative momentum. Medium-term positive momentum is decelerating as the MACD (moving average convergence divergence) histogram prints in positive territory with a declining trajectory which points to consolidation.
Existing Home Prices Rise
Existing home sales rose by 1.4% in June. This rise in the sale of existing homes snapped a 4-month consecutive decline in existing homes. The median price of an existing home sold in June hit an all-time high of $363,300. That was 23.4% higher than the price in June 2020. Sales of homes priced between $100,000 and $250,000 fell 16% annually. Sales of homes priced between $750,000 and $1 million jumped 119%.
This article was originally posted on FX Empire
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