USD/CAD Remains Solid After Jobless Claims Data

FXOpen

The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Friday, increasing the price of USD/CAD to more than 1.3350 ahead of the US initial jobless claims news. 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 1.3373. A hurdle can be seen near 1.3390, the trendline resistance area as marked with red color in the given below daily chart. A break and daily closing above the 1.3390 resistance shall trigger fresh buying pressure, opening door for a move towards the 1.3600 resistance, the high of 28th December, 2016 as marked with red box in our chart.

USD/CAD Remains Solid After Jobless Claims Data

On the downside, a support may be seen near 1.3363, the trendline support area as demonstrated with pink color in the given above daily chart. Not to mention, 1.3363 is also the 50% fib level support zone. A break and daily closing below the 1.3363 support shall incite renewed selling interest, validating a move towards 1.3067 which is another critical support zone. The technical bias shall remain bullish as long as the 1.3067 support zone is intact.

US Initial Jobless Claims

The number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly, official data showed on Thursday. In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose to a seasonally adjusted 258K, from 243K in the preceding week whose figure was revised up from 241K. Analysts had expected initial jobless claims to fall to 240K last week.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around 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: The American Currency Resumes Growth EUR/USD Analysis: The Rate Updates Its Multi-month Low Market Analysis: Dollar Falls After Inflation Data Release Euro Analysis: ECB Cautions Against Rate Cuts Amid Inflation Battle Market Analysis: GBP/USD Struggles While EUR/GBP Eyes Increase

Latest articles

Shares

Top 5 Stocks to Watch in October: Bank on the Backfoot, No Thirst for Coca-Cola, Tech Giant Takes Dip and Electric Vehicle Volatility

October is here, and as the markets enter a new month, we take a closer look at five stocks that could be of significant interest to investors. 1) Bank of AmericaBank of America stock has taken a dive over the

Forex Analysis

Market Analysis: The American Currency Resumes Growth

The beginning of October turned out to be favourable for continued growth in the US dollar. From the data published yesterday, it follows that in September, the US manufacturing business activity index (PMI) rose to 49.0 against the forecast

Forex Analysis

EUR/USD Analysis: The Rate Updates Its Multi-month Low

Never in its history has the euro fallen for 11 weeks in a row against the dollar, but it happened. The minimum has been set for 2023. The reason seems to be that in an environment where central banks are

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.