USD/CAD moves to daily low: Ivey PMI retreats less than expected

The Ivey Purchasing Managers Index (PMI) in Canada, which measures the month-to-month variation in economic activity, dropped to 56.8 (seasonally adjusted) in April from 58.2 in March. However, this was a smaller drop than the market had expected, with the consensus forecast at 54.8. Following the release of the data, USD/CAD initially moved towards daily lows but later largely ignored the figures. The pair was last seen trading modestly higher on the day at 1.3615.

However, the USD/CAD is still in a bearish trend, and the recent price action suggests that the pair could resume its decline. Furthermore, the USD Index is trading within a tight range in the low-101.00s, and the loss of 101.00 could expose a move to the year-to-date low.

TRADE IDEA DETAILS
CURRENCY PAIR: #USDCAD
CURRENT TREND: Bearish
TRADE SIGNAL: ↘️Sell
👉ENTRY PRICE: 1.3590
✅TAKE PROFIT: 1.3470
❌STOP LOSS: 1.3660

This bearish outlook for the USD Index could also put downward pressure on the USD/CAD pair. Therefore, a sell signal is recommended for the USD/CAD pair.

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