USDCAD – US Dollar Awaits NFP & Canadian Employment Change
Aayush Jindal
Key Highlights
The US Dollar formed a solid uptrend against the Canadian dollar and moved above 1.3400.
There was a successful close above the 100-day simple moving average in USDCAD at 1.3280, which is a positive sign.
Today, the US nonfarm payrolls figure for Feb 2017 will be released by the US Department of Labor, which is forecasted to register 190K, versus 227K previous.
In Canada, the employment Change figure for Feb 2017 will be released by the Statistics Canada, which is forecasted to register 2.5K, versus 48.3K previous.
USDCAD Technical Analysis
The US Dollar had an upper hand vs the Canadian Dollar, as it moved above 1.3400 this week. The USDCAD pair now looks set for more upsides towards 1.3600.Before, the recent upside was initiated, there was a break above a bearish trend line at 1.3200 on the daily chart. The pair also broke the 61.8% Fib retracement level of the last decline from the 1.3387 high to 1.2968 low.Furthermore, the pair successfully moved above the 100-day simple moving average at 1.3280. All these signs suggest that the pair may accelerate further. The next stop could be 1.3580. Above it, the pair might test the 1.618 extension of the last decline from the 1.3387 high to 1.2968 low at 1.3646.
US Nonfarm Payrolls Feb 2017
Today, the US nonfarm payrolls figure for Feb 2017 will be released by the US Department of Labor. The market is aligned for the number of new jobs created to increase by 190K in Feb 2017, compared with the last 277K.The US Unemployment Rate is forecasted to decline from 4.8% to 4.7% in Feb 2017. If the result matches the forecast, the US Dollar may continue to gain pace.
Canada’s Employment Change Feb 2017
Today, there is a major economic event in Canada, as the employment Change figure for Feb 2017 will be released by the Statistics Canada. The market is aligned for the change in the number of employed people in Canada to be 2.5K in Feb 2017, compared with the last 48.3K.The Canadian Unemployment Rate is forecasted to remain stable at 6.8% in Feb 2017. Overall, it may be a roller coaster ride for USDCAD later today with so many events lined up.
Before, the recent upside was initiated, there was a break above a bearish trend line at 1.3200 on the daily chart. The pair also broke the 61.8% Fib retracement level of the last decline from the 1.3387 high to 1.2968 low.Furthermore, the pair successfully moved above the 100-day simple moving average at 1.3280. All these signs suggest that the pair may accelerate further. The next stop could be 1.3580. Above it, the pair might test the 1.618 extension of the last decline from the 1.3387 high to 1.2968 low at 1.3646.