USD/CAD Looks Vulnerable As Bearish Engulfing Pattern Weighs


The US Dollar (USD) extended upside movement against the Canadian Dollar (CAD) on Friday, increasing the price of USD/CAD to more than 1.0930 just ahead of some major economic events. The sentiment remains bullish due to higher high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 1.0931. A hurdle may be noted around 1.0985, the swing high of the recent upside rally ahead of 1.1000, the psychological number and then 1.1211, the 161.8% fib level as demonstrated in the following chart.


On the downside, the pair is likely to find a support around 1.0900, the 76.4% fib level ahead of 1.0803, the 50% fib level and then 1.0706, the 23.6% fib level. The sentiment will remain bullish as far as the 1.0620 support area is intact.

Unemployment Rate

The rate of unemployment remained 7.1% in July as compared to 7.1% in the month before, the median projection of different economists say. Generally speaking, higher unemployment rate is considered negative for the economy, hence a better than expected actual reading will be seen as bearish for USD/CAD and vice versa.

Net Change In Employment

The Canadian economy added 20.0K jobs in July as compared to 9.4K decline in the jobs during June, according to the median projection of different economists. The Statistics Canada is due to release the employment change data today in the US session. Generally speaking, an increase in the employment is considered positive for the economy, hence a better than expected actual reading will be seen as bearish for USD/CAD and vice versa.


Keeping in view the overall technical and fundamental outlook, selling the pair around the current levels appears to be a good strategy in short to medium term.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

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

Market Analysis: US Currency Continues to Grow Ahead of GDP Data Release Market Analysis: Gold and Commodity Currencies Resume Their Decline Market Analysis: EUR/USD Takes Hit While USD/CHF Surges Market Analysis: The Yen and European Currencies Headed to New Lows Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience

Latest articles

Financial Market News

US Government Shutdown: Assessing Economic Impact and Recession Risks

The recurring spectre of a government shutdown has once again loomed over the United States, prompting concerns about its potential economic consequences. The shutdown may occur this weekend unless lawmakers agree on spending levels and whether to give more aid


S&P 500 Analysis: Price Reaches The Edge of Abyss

Investors in the US stock market have serious reasons to worry: → The likelihood of a shutdown of government agencies is becoming more and more real. It could happen as early as next week if a budget agreement is not reached


Bitcoin Cash Analysis: Promising Resistance Breakout

Yesterday, the head of the SEC regulator, Gary Gensler, answered questions for 4 hours before the Financial Services Committee of the US House of Representatives, which, among other things, related to cryptocurrencies. What has become known: → on the eve of

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. 60% 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.