FXOpen
The US Dollar (USD) inched lower against the Canadian Dollar (CAD) on Monday, dragging the price of USDCAD to less than 1.3100 following the release of Canada’s employment report. The technical bias remains bearish because of a lower low and lower high in the recent downside move.
Technical Analysis
As of this writing, the pair is being traded around 1.3098. A support may be noted near 1.3062 (the 23.6% fib level as well as lower trendline) ahead of 1.2968 (the low of the last major downside move) and then 1.2900 (the psychological number).
On the upside, the pair is expected to face a hurdle near 1.3212 (the high of Tuesday) ahead of 1.3283 (the 50% fib level) and then 1.3387 (the high of the last major upside rally) as demonstrated in the above daily chart. The technical bias shall remain bearish as long as the 1.3387 resistance area is intact.
Canadian Unemployment Rate
Canada’s unemployment rate fell 0.1 per cent in January to 6.8 per cent, the government said Friday. Some 48,000 new jobs were added, in contrast with forecasts that had predicted a modest loss of 10,000 jobs and a stable unemployment rate. Year-over-year employment grew by 276,000 jobs (+1.5 per cent), with the bulk of hires occurring since August. Job growth was strongest in the service sector, but declined in the information, culture and recreation sectors. Employment grew among men and women age 25-54 and varied little in other population segments, according to Statistics Canada.
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.
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
Coca-Cola Company (KO) Shares Trade Near All-Time High
Stock market charts indicate that from the start of last week’s trading through to its close:
→ The S&P 500 Index (US SPX 500 mini on FXOpen) declined by approximately 3%;
→ Pepsico (PEP) shares dropped by more than
BTC/USD Analysis: Bulls on the Offensive
In our previous analysis of Bitcoin’s price (14 April), we:
→ constructed a long-term ascending channel (marked with blue lines);
→ highlighted resistance level R, suggesting that the bulls were seizing the initiative in an attempt to pave the way for
Market Analysis: Gold Extends Record Run, WTI Crude Oil Rebound in Tandem
Gold price started a fresh surge above the $3,250 resistance level. WTI Crude oil prices climbed higher above $60.00 and might extend gains.
Important Takeaways for Gold and WTI Crude Oil Prices Analysis Today
· Gold price started a