The Dollar Resumes Its Rally After a Correction

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At the start of the current trading week, there was a sharp pullback in major currency pairs. GBP/USD climbed to 1.2580, EUR/USD tested 1.0400 as resistance, and USD/CAD temporarily dropped below 1.4200. However, dollar sellers failed to fully capitalise on this movement, and the pairs have so far been unable to maintain their recent levels.

USD/CAD

The USD/CAD rally observed since mid-September paused following another test of the 1.4470 level. On the daily timeframe, a reversal pattern, the “double top,” was formed, and its partial completion concluded after the pair dropped to 1.4280. Currently, the pair is trading above 1.4350. With the right fundamental catalyst, the price could retest the 1.4470–1.4450 range. Conversely, if USD/CAD falls below the recent low of 1.4270, a further decline toward the 1.4200–1.4170 range may follow.

Key events that could influence USD/CAD dynamics today include:

  • 16:30 (GMT+2): Average hourly earnings in the US
  • 16:30: US non-farm payrolls
  • 16:30: Canadian unemployment rate
  • 16:30: Canadian employment change

EUR/USD

As expected, after updating last year’s low, EUR/USD managed to correct toward the 1.0430–1.0400 range. However, a more significant recovery failed to materialise, and the pair is currently testing the 1.0300 level as support. Depending on today’s employment data, the pair may either rise above 1.0430 or retest the recent low at 1.0230.

In addition to US employment data, the following events may affect EUR/USD pricing today:

  • 11:00 (GMT+2): Spanish industrial production
  • 16:00: Germany’s current account balance (non-seasonally adjusted)
  • 18:00: US 5-year inflation expectations index from the University of Michigan

This version retains all critical information while using British English terms and improving fluency.