Lower oil prices push CAD to much more lower levels heading towards 1.3176.
IMPACT ON USD:
Economic activity in the manufacturing sector expanded in July for the 31st consecutive month, and the overall economy grew for the 74th consecutive month, say the nation's supply executives.
Ahead of tomorrow's key events (the US ADP non-farm employment change, trade balance, ISM non-manufacturing PMI, and Canada's trade balance) the pair is trading at higher levels with highly overbought indicators. Before further move up, we expect the price to correct a bit.
Technical view: The pair reached a high of 1.3176. At today's Asian session, the pair was unable to breach the previous day's double top. In case of a daily close above 1.3180, bulls will move towards 1.3260 and 1.3320 again . Monthly resistance is seen at 1.3180 and 1.3380. In all time frame intervals, oscillators look overbought.
Intraday buying is available above 1.3180 with targets at 1.3200, 1.3230, and 1.3260.
Sell below 1.3090. Overbought indicators favor selling at higher levels of 1.3260-1.3300.
The material has been provided by InstaForex Company – www.instaforex.com