The US Dollar (USD) slips down against the Canadian Dollar (CAD) this morning, soon after the release of unfavorable economic news. The price went below 1.3100 and the technical bias might also remain bearish due to the lower low printed during the last downside move.
USD/CAD: Technical Analysis
As of now, the USDCAD is being exchanged for the price near 0.6913, the major horizontal resistance might come across the price around 1.3094, making it stick around the current level and may not allow it to pass through it. Then comes 1.3183, and 1.3220, the 61.8% Fib level and the trend line resistance respectively which may push the price back towards downside as shown in the graph below.
Coming towards the downside, the support level may be seen around 1.3039, the immediate key horizontal support which may provide some assistance to the price and help it to sustain around the said level. However, if the price kept falling, then it may meet another support level near 1.3000, the psychological number and then 1.2951, the low of December 31, 2019, may prevent the price from falling further as shown in the graph above.
The United States Non-Farm Payrolls Economic Release
From fundamental perspective, the US Bureau of Labor Statistics releases stats concerning the number of vacant positions in the non-agricultural sector. As far as the numbers are concerned, they can be highly volatile being directly proportional to economic policy decisions usually put forward by the Central Bank. Generally speaking, a high reading is considered positive for the USD and suggests a bullish market for the US Dollar (USD) whereas a low reading implies a bearish market for the US Dollar (USD).
Trading the USDCAD around current levels for both short term and long term positions might not work because the technical bias is anticipated to remain bearish for a while.