FXOpen
The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Friday, increasing the price of USD/CAD to more than 1.3750 ahead of Canada’s employment change report. The technical bias remains bullish because of a higher high in the recent upside move.
Technical Analysis
As of this writing, the pair is being traded around 1.3784. A hurdle can be seen near 1.3809, the trendline resistance as demonstrated in the given below hourly chart with red color. A break and hourly closing above the 1.3809 resistance shall trigger fresh buying pressure, opening the door for a move towards the 1.3900 resistance which is a psychological level.
On the downside, a support may be seen near 1.3750, the confluence of 23.6% fib level as well as horizontal support ahead of 1.3727, the trendline support as demonstrated with pink color in the given above hourly chart and then 1.3700, the psychological number. The technical bias shall remain bullish as long as the 1.3700 support zone is intact.
How USDCAD Reacted on Canada’s Employment Releases in Past?
The USDCAD fell by more than 40 pips after the release of Canada’s employment change report on 7th April, 2017. The actual outcome was 19.4k new jobs as compared to the forecast of 5k.
The pair showed the same reaction, plunging by more than 60 pips after the release of March’s employment change report. The actual outcome was 15.3k new jobs as compared to the forecast of 2.5k.
Not to mention, the above mentioned volatility in the USDCAD was not influenced solely by the Canada’s employment change release, there were some other important news events as well that contributed in the aforementioned price movement in the pair.
How to Trade today’s Employment Change Report
Buying the pair around current levels can be a good strategy in short to medium term as bulls still look in control.
What Assets to Trade?
In addition to USDCAD, trading CADJPY, GBPCAD and CHFCAD can be a good strategy as the aforementioned pairs are highly reactive to the Canada’s economic releases.
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.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Gold Price Plunges After Climbing to $3,500 for the First Time
As the XAU/USD chart shows:
→ Yesterday, the spot gold price stopped just a few cents short of the key psychological level of $3,500 (and even exceeded it on the futures market);
→ But this morning, an ounce is trading
Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report
On 31 March, we noted that bearish sentiment could push Alphabet’s (GOOGL) share price towards the psychological level of $150. As the current price chart suggests, GOOGL is now trading close to that very level.
Moreover, the price is
Four 1-Minute Strategies for Scalpers
Scalping is all about speed, precision, and quick decision-making. For traders who thrive in fast-paced environments, 1-minute strategies offer a way to engage with the market. But with such a short timeframe, trading requires a clear plan and sharp execution.