Fundamentals drive USD/CAD upper

Fundamentals drive USD/CAD upper

2020-09-04 • Updated

The poor Canadian data in combination with the positive US report should push USD/CAD to the upside. Jump in for technical analysis!

Fundamentals

All attention to USD/CAD as economic releases have just come out from both sides. The Canadian labor report revealed that 245 800 people found jobs in August, while analysts had predicted 262 500. At the same time, the Canadian unemployment rate was 10.2%, which was slightly worse than the forecast of 10.1%. The negative data may weigh on the loonie.

As for the US economic releases, non-farm payrolls came out almost as planned: 1.371 million Americans became employed during August, while analysts foresaw 1.375 million. The US unemployment rate came out much better than anticipated: 8.4% vs. the forecast of 9.8%. Besides, average hourly earnings beat estimates too. They turned out 0.4%, while the forecast was 0.0%. The optimistic data should add tailwinds to the US dollar.

Technical tips

USD/CAD has been trading in the descending channel since the end of June. However, now the pair may even break through the upper trend line amid such strong fundamentals. Actually, it has failed to cross it so far. There is the main question now: will be stronger fundamentals or technical factors? Let’s see what will happen. The move above the intersection of the yesterday’s high and upper trend line at 1.3130 may drive the pair upper to 1.3190. On the other hand, if the pair falls below the key psychological mark of 1.3000, it may dip down to the low of January 6 at 1.2950. Watch out closely the breakout of these levels and follow further news!

USDCADH4.png

TRADE NOW

Similar

XBRUSD: Prepares to Correct Intraday Rally
XBRUSD: Prepares to Correct Intraday Rally

Bearish Scenario: Sales below 80.00 with TP1: 79.34, TP2: 78.94, TP3: 78.55, and 78.00 Bullish Scenario: Buys above 78.00 (wait for a retracement to the zone) with TP: 79.34 TP2: 80.00, and TP3: 81.00

Oil In The Geopolitical Lens: Soars And Dips Under The Influence Of Global Events
Oil In The Geopolitical Lens: Soars And Dips Under The Influence Of Global Events

Amid uncertainty driven by geopolitical events, oil prices surged to record highs. However, a correction in oil prices is observed with a gradual improvement in the situation in the Middle East and an increase in demand. The question facing investors is whether there are prerequisites for further price growth or if everything depends on the dynamics of the political landscape. In this article, we will explore the impact of recent events on the global oil market and the prospects for developing this crucial commodity sector.

Latest news

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

XAUUSD: Will Gold Continue to Rally?
XAUUSD: Will Gold Continue to Rally?

Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera