The US Dollar (USD) inched higher after falling for three days in a row against the Canadian Dollar (CAD) this Tuesday with a price of more than 1.3200. As far as the technical bias is concerned it might remain bullish because of the higher high printed during the last upside move.
USD/CAD: Technical Analysis
As of this writing, the USDCAD is being exchanged for 1.3206 with multiple resistance levels ahead. The price may come across a resistance around 1.3242, its a major horizontal resistance which is likely to repel the price downside. Then it may meet the second resistance level around 1.3295, which is known as the 23.6% Fibonacci level and then 1.3382, the high of September 03, 2019 may prevent the price from increasing above this level as shown in the graph below.
On the other hand, the pair’s price may receive some support around 1.3155, the 61.8% Fib level ahead of 1.3104, the trend line support. Both of these levels may help the price to stay above the said level and prevent it from decreasing further. If by chance the price continues dropping down then 1.3015, the major horizontal support may put a stop across the price acting as a strong support level as shown in the graph above.
USD Non-Farm Payrolls Release
From a fundamental standpoint, the nonfarm payrolls released by the US Bureau of Labor Statistics shows the number of new openings made during the earlier month, in all non-agrarian business. The month to month changes in payrolls can be amazingly unpredictable, because of 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. As a rule, a high perusing is viewed as positive (or bullish) for the USD, while a low perusing is viewed as negative (or bearish).
As per the previous price movement for a couple of days, trading USDCAD for a short term position might not work.