USDCAD posts an impressive rebound

USD/CAD posts an impressive rebound

The US Dollar was bullish against most of its major pairs on Thursday with the exception of the CHF and JPY.

On the economic data front, the Producer Price Index Final Demand increased 0.4% on month in May (+0.1% expected), from -1.3% in April. Initial Jobless Claims fell to 1,542K for the week ending June 6th (1,550K expected), from a revised 1,897K in the previous week. Continuing Claims decreased to 20,929K for the week ending May 30th (20,000K expected), from a revised 21,268K in the prior week. 

On Friday, the University of Michigan's Consumer Sentiment Index for the June preliminary reading is expected to increase to 75.0 on month, from 72.3 in the May final reading.                                                                                                          
The Euro was bullish against most of its major pairs with the exception of the CHF, JPY and USD. In Europe, in the U.K., the RICS index measuring house prices came out at -32% in May, against -24% expected and -22% the previous month (revised from -21%).

The Australian dollar was bearish against all of its major pairs.  

Looking at the most active pairs, the USD/CAD jumped an impressive 208 pips to 1.362. We have to look at a daily chart in order to see its impressive rebound in Thursday's trading. Traders playing the rebound may want to consider a stop-loss at the high of the bullish hammer reversal candlestick that formed on Wednesday. Key resistance can be seen at 1.385.



Source: GAIN Capital, TradingView

Happy trading.
Related tags: Forex USD CAD Forex

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