USDCAD Remains Buoyed Ahead of Unemployment News

FXOpen

The US Dollar (USD) extended upside movement against the Canadian Dollar (CAD) during the ongoing week, increasing the price of USDCAD to more than 1.2650 in a third consecutive week of upside movement.  The technical bias remains bullish due to a Higher High and Higher Low in the recent wave.

Technical Analysis

As of this writing, the pair is being traded around 1.2689. A hurdle may be noted near 1.2833, the swing high of the last major upside rally ahead of 1.2900, the psychological number as demonstrated in the following weekly chart.

USDCAD Remains Buoyed Ahead of Unemployment News

On the downside, live forex charts show a support near 1.2617, the 23.6% fib level ahead of 1.2375, the 50% fib level and then 1.2134, the 76.4% fib level. The technical bias will remain bullish as long as the 1.1918 support area is intact.

Unemployment Rate

The rate of unemployment in Canada remained 6.9% in June as compared to 6.8% in the month before, the median projection of different economists say. Generally speaking, higher unemployment rate is considered negative for the economy and vice versa. The government report will be released today during the early New York session. A worse than expected actual outcome might incite renewed bullish momentum in the price of USDCAD and vice versa.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term if we get a valid bearish pin bar or bearish engulfing candle around the high of last major rally as described above.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.