Will USD/CAD Stay Firm Above 1.4000 Ahead of Key Data?
USD/CAD Holds Steady Just Above 1.4000 Ahead of US and Canadian Data Releases.
FUNDAMENTAL OVERVIEW:
The US Dollar remains firm above 1.4000 against the Canadian Dollar, holding six-month highs. The pair has climbed over the past three weeks but paused ahead of key US and Canadian data releases, including US consumer confidence and Canada’s employment figures.
The Dollar’s strength this week has been bolstered by political uncertainty in France and Japan, while the Canadian Dollar faced pressure as the Israel-Hamas trade deal pushed oil prices lower.
On Friday, San Francisco Fed President Mary Daly added to market expectations for future rate cuts, citing a “worrisome” labor market deterioration despite inflation remaining below concerns.
Investors are cautious ahead of Canada’s employment report, which is expected to show a modest 5K rise in net employment for September after August’s 65.5K decline, with the unemployment rate likely ticking up to 7.2% from 7.1%. Later, the US Michigan Consumer Sentiment Index is anticipated to fall to 54.2 in October from 55.1 in September, highlighting potential challenges for the Fed.
USD/CAD TECHNICAL ANALYSIS DAILY 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 Buying Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 1.4019
Immediate support level: 1.3866
HOW TO TRADE USD/CAD
Following a sharp decline, USD/CAD found strong support and rebounded decisively, breaking a key resistance level with strong bullish momentum. The pair is currently facing upside rejection and may retest the support zone. If it holds above this level, the rally could continue toward the next major resistance area.