USD/CAD Steady Near 1.3800 Ahead of US Jobs Data.
USD/CAD holds near 1.3800 as traders await US employment data.
FUNDAMENTAL OVERVIEW:
The US Dollar strengthened for a third straight session on Wednesday, supported by higher Treasury yields, while falling Oil prices continued to pressure the commodity-linked Canadian Dollar. Still, USD/CAD remains capped near the 1.3800 level.
Improved market sentiment weighed slightly on the Greenback, with the US Dollar Index slipping intraday but holding most of Tuesday’s gains. Meanwhile, WTI crude retreated from Monday’s $65.77 high to just above $64.00 on reports that OPEC+ may consider an additional production hike in October. Given Oil’s importance as Canada’s top export, lower prices have added pressure on the CAD.
Looking ahead, traders await US JOLTS Job Openings and Factory Orders data, expected to reinforce signs of economic cooling and strengthen prospects for a Fed rate cut in September. Confirmation of these expectations could deepen the Dollar’s pullback.
USD/CAD TECHNICAL ANALYSIS CHART:
Technical Overview:
USD/CAD is trading within an up channel.
USD/CAD is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Neutral trend.
Immediate Resistance level: 1.3834
Immediate support level: 1.3724
HOW TO TRADE USD/CAD
After a strong rally, USD/CAD faced rejection at a key resistance and sharply reversed lower, dropping into a support zone where it briefly stabilized and rebounded. The recovery, however, was short-lived, with the pair resuming its decline. Currently, USD/CAD is pulling back toward resistance, and another rejection could drive it further down toward key support.
