Despite the US dollar‘s weakness, it has been falling like a man trying to rally from every drop against the Canadian dollar when they hit parity. For the past few months, the 1.0000 level had been a very strong support for the greenback. However, now that the value of the US dollar versus the Canadian dollar (USD/CAD) is under 1.0000 and has broken down from descending triangle looking pattern in the weekly chart, we may see the USD hit lower levels . The USD/CAD is moving below the 40 and 10-period moving averages. The MACD is moving below 0 as well which suggests bearishness for this pair. If the declines continues which is more likely, the next support could be the 0.9700-0.9800 area. If this marker fails to hold the USD’s value from dropping against the CAD, the next support could be the descending triangle’s target at 0.9000-0.9100 (I got the base of the triangle added to the breakdown point). On the flip side, the immediate resistance could be 1.0000. Furthermore, the next resistances could be the moving averages.
Today’s report includes the US Factory Orders m/m that will be released at 1500 GMT and the Federal Open Market Committee’s meeting at 1900 GMT. Tomorrow will be a tough ride for the USD/CAD as the ADP Non-Farm Employment Change and ISM Non-Manufacturing PMI of the United States will be released.