The US Dollar extended its upside move above 1.3640 against the Canadian dollar to trade towards 1.3770.
There is an important rising channel with support at 1.3670 formed on the 4-hours chart of USDCAD.
Recently in Canada, the International Merchandise Trade for March 2017 released by the Statistics Canada posted $-0.14B, compared with the expectation of $-0.80B.
Today in the US, the all-important nonfarm payrolls figure for April 2017 will be released by the US Department of Labor, which is forecasted to increase by 180K, up from the last 98K.
USDCAD Technical Analysis
The US Dollar maintained an uptrend against the Canadian Dollar and traded above the 1.3620-40 resistance. The USDCAD pair is currently correcting, but remains supported near 1.3670.The pair recently traded near the 1.3770 level where it faced offers and started a correction. There is an important rising channel with support at 1.3670 formed on the 4-hours chart. It may provide support on the downside near 1.3680 and 1.3670.Moreover, the 23.6% Fib retracement level of the last wave from the 1.3410 low to 1.3776 high is also at 1.3675. So, if the pair moves down, there are many support around 1.3760, waiting to prevent declines in USDCAD.
Canada’s International Merchandise Trade
Recently in Canada, the International Merchandise Trade for March 2017 was released by the Statistics Canada. The market was expecting a trade deficit of $-0.80B, compared with the last $-0.97B.The actual result was a bit better than the forecast, as the trade deficit was $-0.14B in March 2017. Imports were $47.11B, and exports were $46.98B.The report highlighted:Exports rose 3.8% to a record high $47.0 billion in March, with increases in 8 of 11 sections, following a 2.5% decline in February. Volumes were up 2.5% in March and prices increased 1.3%. Energy products, consumer goods, and metal and non-metallic mineral products were responsible for the increase in exports in March.Overall, the USDCAD awaits the non-farm payroll release in the US, and the employment Change in Canada for the next move towards 1.3770 or 1.3660.
Economic Releases to Watch Today
US nonfarm payrolls April 2017 – Forecast 180K, versus 98K previous.
US Unemployment Rate April 2017 - Forecast 4.6%, versus 4.5% previous.
US Average Hourly Earnings (MoM) April 2017 - Forecast 0.3%, versus 0.2% previous.
Canada’s employment Change April 2017 – Forecast 10K, versus 19.4K previous.
Canada’s Unemployment Rate April 2017 - Forecast 6.7%, versus 6.7% previous.
The pair recently traded near the 1.3770 level where it faced offers and started a correction. There is an important rising channel with support at 1.3670 formed on the 4-hours chart. It may provide support on the downside near 1.3680 and 1.3670.Moreover, the 23.6% Fib retracement level of the last wave from the 1.3410 low to 1.3776 high is also at 1.3675. So, if the pair moves down, there are many support around 1.3760, waiting to prevent declines in USDCAD.
The actual result was a bit better than the forecast, as the trade deficit was $-0.14B in March 2017. Imports were $47.11B, and exports were $46.98B.The report highlighted:Exports rose 3.8% to a record high $47.0 billion in March, with increases in 8 of 11 sections, following a 2.5% decline in February. Volumes were up 2.5% in March and prices increased 1.3%. Energy products, consumer goods, and metal and non-metallic mineral products were responsible for the increase in exports in March.Overall, the USDCAD awaits the non-farm payroll release in the US, and the employment Change in Canada for the next move towards 1.3770 or 1.3660.