It’s a good day for the US Dollar (USD) since it started off well this morning, marked a bullish candle on the graph against the Canadian Dollar (CAD) with an increase in the price of more than 10 pips making the figure appear more than 1.3200. The price increase results after a major piece of an economic release. The technical bias may also remain bullish because during the last move a higher high was printed on the graph.
USDCAD: Technical Analysis
As of now, the USDCAD is being quoted around 1.3288. The price may face multiple resistance levels ahead with the first being the major horizontal resistance near 1.3295, it might push the price back towards the downside. Moving ahead, the price may hit a trend line resistance around 1.3318, which may also make it difficult for the price to go through, ahead of 1.3382, the high of September 03, 2019 as shown in the graph below.
Talking about the support levels, the price is likely to receive strong support around 1.3242, its a key horizontal support level which may help the price to sustain around the current level and prevent it from falling further. The price may then be subjected to a second support level around 1.3155, the Fibonacci level ahead of the trend line support which stands next near 1.3050, as shown in the graph above.
United States’ Non-Farm Payrolls Release
From a fundamental standpoint, the US Bureau of Labor Statistics releases a nonfarm payroll figure showing the number of recent openings made during the previous month, in all non-agrarian businesses. The data released on a monthly basis can vary and be highly unpredictable, due to its high connection with financial strategy choices made by the Central Bank. The number is likewise dependent upon solid audits in the up and coming months, and those surveys additionally will in general trigger instability in the forex board. Generally speaking, a high perusing is viewed as positive (or bullish) for the USD, while a low perusing is viewed as negative (or bearish).
Since the technical bias is likely to remain bullish, therefore, trading the USDCAD for both short term and long term positions may work well.