Forex Trading: USDCAD Technical Analysis – July 04, 2019
The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Thursday, increasing the price of USDCAD to more than 1.3000 following some key economic releases. The technical bias may turn bearish because of the lower low in the recent downside move.
USD/CAD Technical Analysis
As of this writing, the pair is being traded around 1.3055, resistance can be noted around 1.3117, the key horizontal resistance ahead of 1.3325, the 38.2% Fib level resistance and then 1.3545, the trendline resistance as demonstrated in the given above below chart.
On the downside, A support can be noted near 1.2953, the key horizontal support ahead of 1.2786, the 61.8% Fib level support and then 1.22255, the low of February 02, 2019 as demonstrated in the given chart. The technical bias shall remain bearish as long as 1.3117, the major horizontal resistance level remains intact.
Labor Force Participation Rate – The United States
In the United States, the figure concerning labor force participation rate remained 63.0 in March, as compared to 63.2 during the month before, up beating the economist expectation which was 62.9. The data is copied from the news released by the Bureau of Labor Statistics Department of Labor, United States.
The data is derived after taking into account the age factor of labors including both working and those who are still looking for a job. It is presented in percentage of the total number of people either being employed or unemployed. Generally speaking a high reading in this regard is considered as a bullish trend for the US Dollar (USD) and vice versa.
Considering the overall price behavior of the pair over the last couple of days, selling the USDCAD around current levels can be a good decision in short to medium term. Therefore, sticking to economic calender only might not work, you also need to find brokers offering exceptional leverage level so you may find some margin while trading your pair around. However, take note that high leverage can also lead you to severe losses if there no negative balance protection is in place.