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USDCAD Technical Analysis

  

The U.S. Dollar (USD) slid down against the Canadian Dollar (CAD) last week, decreasing the price of the USDCAD pair to less than 1.2400, ahead of the release of Canada’s employment news. The technical bias remains bearish since the pair printed a lower low in the recent downside move.  

Technical Analysis 

As of this writing, the USDCAD pair strengthens around 1.2381. Should the price continue to rise, the pair might face some resistance near the listed below price levels;

Resistance 

1.2486 – the high of June 20, 2021

1.2548 – the horizontal resistance

1.2629 – the 23.6% Fib level resistance

Weekly Chart Source – MetaTrader4

On the downside, the pair might find some support near the given price levels;

Support

1.2252 – the low of June 20, 2021

1.2200 – the psychological number

1.2142 – the horizontal support

Canada’s Unemployment Rate News

Statistics Canada anticipates releasing numbers for the Canadian Unemployment rate on Friday (July 09, 2021). As per the average forecast of FXStreet.com economists, the Canadian Unemployment registered a reading of 8.2% in June, bearing no change as compared to a reading of 8.2% in the month before. 

The Canadian unemployment data reflects the number of individuals having no jobs in hand over the given time. Not to mention, the Canadian unemployment news is a leading indicator of the country’s economy. Increasing unemployment figures show lack of expansion in the labor market in Canada. Generally speaking, a low reading amid the unemployment rate in Canada strengthens the Canadian Dollar (CAD) and suggests a bearish trend for the USDCAD pair and vice versa. 

Daily Overview 

On the daily time frame, the pair might sustain near 1.2340, the key horizontal support, ahead of 1.2300, the psychological number, and then 1.2263, the lower trendline arm.

Daily Chart Source – MetaTrader4

Similarly, the pair might face resistance near 1.2461, the upper trendline arm, ahead of 1.2500, the psychological number, and then 1.2546, the Fibonacci retracement (61.8%).

Conclusion

Considering the price movement of the pair over the past few days, it may be a better option in the short term if the pair was sold at around 1.2546. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.  


Vantage does not represent or warrant that the material provided here is accurate, current, or complete, and therefore should not be relied upon as such. The information provided here, whether from a third party or not, is not to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any financial instruments; or to participate in any specific trading strategy. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. We advise any readers of this content to seek their own advice. Without the approval of Vantage, reproduction or redistribution of this information is not permitted.

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