Technical Analysis

-USDCAD has formed a Head and shoulders pattern, and the price broke its neckline. The support $1.34394 breach may be a signal for a SELL.

-EURUSD is inside a bullish channel and forming higher highs and lows. The double top pattern might be formed, giving a SELL trading opportunity if the price breaks below the recent swing low.

Canada Interest Rate Decision

Bank of Canada (BOC) governing council members come to a consensus on where to set the rate.Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.

A higher than expected rate is positive/bullish for the CAD, while a lower than expected rate is negative/bearish for the CAD

The previous Actual data was 5.00%. The forecasted data is 5.00%. The report is due Wednesday, December 6, 2023, 20:30 GMT.

USDCAD Technical Analysis:

USDCAD has formed a Head and shoulders pattern, which suggests the price may fall. The charts show the market was in an uptrend, with the price trading above the 50EMA. After the H&S pattern was formed, the price started to trade down after breaking the neckline.

After the neckline break, the price also broke below 50EMA, which indicated the market trend was changing. In the MID-OCT, the RSI also formed a bearish RSI Divergence, signaling a SELL. The most recent support is at $1.34394, and the price is very near it. As the overall trend was strongly bullish, the price may take a support at the price and continue its bullish trend.

The RSI level is at 31.71, signaling the asset is undervalued. A good trading opportunity came when the price broke the neckline of the H&S pattern. As of now, traders may wait for the confirmation once the price is breached at support.

Pivot Points: USDCAD

U.S. Nonfarm Payrolls

Nonfarm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

The previous Actual data was 150K. The forecasted data is 180K. The report is due Friday, December 8, 2023, 19:00 GMT.

EURUSD Technical Analysis:

EURUSD formed a bottom at $1.04508, after which the price started to change its direction from a downtrend to an uptrend. The price started to form higher higher and higher lower inside the bullish channel. On the way up, the price crossed the 50EMA, at which a higher low took support.

The price formed a new swing high at $1.10175 but did not form a higher low; instead, it is trading at the previous swing low price. The 50EMA is below the current price while the RSI is at 56.66, which shows the asset is overvalued.

If the price breaks below the $1.08404 level and takes a retest of the broken support level, the price may continue its downward move. However, if the price continues to make higher highs and higher lows, traders may wait for the previous swing high of $1.10175 break.

Pivot Points: EURUSD

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