USD/CAD Technical & Fundamental Outlook

FXOpen

Like other USD pairs, USD/CAD too fell on Thursday and gave a daily closing at 1.0647, thus retracing all of the gains from Wednesday. However, the pair is still under a strong bullish trend.

Major Support & Resistance Levels

At the moment in Asian session, spot is around 1.0662 and the pair is likely to find a strong support around 1.0602. Bias on USD/CAD will remain bullish until it breaks and closes below 1.0600 handle (monthly trendline support) which is being considered a very significant support area. Below 1.0600, other key support levels are 1.0548, 1.0493 and 1.0443.

USD/CAD Technical & Fundamental Outlook

On upside, the pair is likely to find a strong resistance around 1.0800 handle which is 38.2% fib level of last major move from 1.3063 to 0.9406. A break and close above 1.800 resistance area may push USD/CAD into relatively stronger bullish trend.

Technical Indicators

Relative Strength Index (RSI) is neutral on hourly and four hours timeframe and just below overbought level in daily timeframe. MACD is still bullish on daily timeframe; however slight divergence can also be noted on four hour chart. 55 DMA is still above 200 DMA and 100 DMA which suggests continuation of bullish trend.

Fundamental Scenario

Today both the US and Canadian baskets are loaded with a number of major economic reports that include:

  • Canada Unemployment Rate (Nov)
  • Canada Net Change in Employment (Nov)
  • US Non-Farm Payrolls (Nov)
  • US Unemployment Rate (Nov)
  • Core Personal Consumption Expenditure – Price Index (MoM) (Oct)
  • Core Personal Consumption Expenditure – Price Index (YoY) (Oct)
  • Personal Consumption Expenditures – Price Index (MoM) (Oct)
  • Personal Consumption Expenditures – Price Index (YoY) (Oct)
  • Reuters/Michigan Consumer Sentiment Index (Dec)

No volatility is expected in London session as investors are cautious ahead of crucial US session. A better than expected non-farm payrolls may encourage Federal Reserve to consider tapering in on-going asset purchase program during December meeting, in turn triggering a strong bullish trend in the US Dollar.

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.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Financial Market News

Market Insights with Gary Thomson: US Inflation Rate, UK GDP Growth Rate, US PPI, Earnings Reports

In this video, we’ll explore the key economic events, market trends, and corporate news shaping the financial landscape. Get ready for expert insights into forex, commodities, and stocks to help you navigate the week ahead. Let’s dive in!

Tesla Shares (TSLA) Hit Two-Month High
Shares

Tesla Shares (TSLA) Hit Two-Month High

During Friday’s trading session, Tesla shares briefly rose above the $300 mark — the first time in over two months. Although the daily candle closed below this key psychological level, TSLA still outperformed the broader stock market.

This move was

What Is Stock Tape Reading, and How Do Traders Use It?
Trader’s Tools

What Is Stock Tape Reading, and How Do Traders Use It?

Tape reading is a real-time market analysis method used to track buying and selling pressure. Unlike technical indicators, which rely on historical data, tape reading focuses on executed trades, order flow, and liquidity shifts. Traders use it to assess momentum,

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.