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USDCAD – Canadian Dollar Eyes Employment Report For Recovery

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Aayush Jindal

Key Highlights

  • The US Dollar was seen struggling near the 1.3200 resistance area against the Canadian dollar.
  • There is a crucial bearish trend line at 1.3200-1.3210 on the 4-hours chart of USDCAD, acting as a hurdle for an upside move.
  • In Canada, the employment Change figure for Jan 2017 will be released today by the Statistics Canada, forecast 0.0K vs 53.7K previous.
  • Canada’s Unemployment Rate is forecasted to remain stable at 6.9% in Jan 2017.

USDCAD Technical Analysis

The US Dollar bounced sharplythis week from the 1.3000 low against the Canadian dollar, but failed near 1.3200. The USDCAD pair now awaits the employment report for the next move.USDCAD Technical Analysis Canadian Dollar USDThe 4-hours chart of USDCAD suggests that the pair failed near a major resistance at 1.3200-1.3210. It is a confluence area of two trend lines. As long as the pair is below the highlighted trend line resistance or 1.3200, it remains at a risk of a decline towards 1.3050.On the downside, the 61.8% Fib retracement level of the last wave from the 1.3007 low to 1.3213 high might act as a support near 1.3085. It looks like the market is waiting for the employment report for the next break either below 1.3050 or above 1.3200.

Canada’s Employment Change and Unemployment Rate

Today in Canada, there will be a few key economic releases like the employment Change figure for Jan 2017 by the Statistics Canada. The forecast is slated for no change in the number of unemployed workers divided by the total civilian labor force in Jan 2017.Moreover, the Unemployment Rate is forecasted to remain stable at 6.9% in Jan 2017. So, it looks like the market is not expecting any major change in the labor market from the last time. If there is any improvement, the Canadian dollar may attempt to gain against the USD in the short term.

US Initial Jobless Claims

Recently in the US, the Initial Jobless Claims figure was reported by the US Department of Labor. The forecast was slated for an increase in the number of people filing first-time claims for state unemployment insurance from 246K to 250K.The result was better, as there was a decline from 246K to 234K. Overall, the US dollar may gain traction, but the USDCAD might continue to face sellers near 1.3160-80.
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