USD/CAD Remains Range-Bound: Anticipating Canadian Employment Data
12 Feb 2024
USD/CAD remains range-bound around the 1.3450 level in anticipation of Canadian employment data.
- USD/CAD is range-bound around 1.3450 in anticipation of Canada’s labor market data.
- Growing tensions in the Middle East support the US Dollar, while the Canadian Dollar displays subdued activity, reflecting uncertainty among market participants.
The USD/CAD pair moves within a narrow range near 1.3450 as traders anticipate the release of Canadian Employment data for January, scheduled for 13:30 GMT.
Market participants expect Canadian employers to add 15,000 new workers, contrasting with the stagnant demand observed in December. The Unemployment Rate is projected to experience a slight uptick to 5.9%, compared to the previous reading of 5.8%. A positive labor market scenario may encourage the Bank of Canada (BoC) to maintain interest rates at their current level for an extended period.
Meanwhile, the US Dollar Index (DXY) is striving to rebound, driven by a cautious market sentiment amid escalating tensions in the Middle East. Israel has rejected a ceasefire proposal from Hamas, citing unacceptable terms. Additionally, investors eagerly anticipate the release of January’s United States inflation data scheduled for Tuesday, expecting a steady expansion of price pressures.
USD/CAD TECHNICAL ANALYSIS DAILY CHART:
USD/CAD is currently trading within a down channel.
USD/CAD is positioned below all Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying zone, while the Stochastic oscillator suggests a Negative trend.
Immediate Resistance level: 1.3485
Immediate support level: 1.3449
HOW TO TRADE USD/CAD
After a downward stint, USD/CAD discovered support and subsequently reversed to the upside. However, the upward momentum proved short-lived, encountering consistent rejections at specific levels. Currently, it hovers around a support zone, with the possibility of further downside if this level is breached.
TRADE SUGGESTION- STOP SELL– 1.3444, TAKE PROFIT AT- 1.3364, SL AT- 1.3502.