USD/CAD daily chart with support and resistance lines on it. Click to enlarge:
- ADP Nonfarm Employment Change: Thursday, 12:30. The ADP release helps analysts track the health of the labor market. The indicator rebounded in June, with a sharp gain of 30.4 thousand. Will we see another strong reading in July?
- Foreign Securities Purchases: Friday, 12:30. After two declines, domestic securities rebounded with a gain of C$10.2 billion, well above the forecast of C$5.02 billion. We now await the June release.
* All times are GMT
USD/CAD Technical Analysis
Technical lines from top to bottom:
We start with resistance at 1.3565.
1.3445 has held in resistance since the first week of June.
This is followed by 1.3385.
1.3350 was under pressure in resistance in mid-week trading, but held fast. This line has not been breached since mid-June.
1.3265 remained relevant throughout the week. The line starts the new trading week as a weak resistance line.
1.3175 is the first line of support.
1.3125 (mentioned last week) has some breathing room in support.
1.3048 has held since mid-July. 1.2916 is next.
1.2831 has held in support since early October. It is the final line for now.
I remain bearish on USD/CAD
The Canadian dollar hasn’t recorded a winning week since early July, and with the trade war between the U.S. and China heating up, investor risk appetite remains low.
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