The US Dollar (USD) inched lower against the Canadian Dollar (CAD) on Monday, decreasing the price of USDCAD to less than 1.3200 following some key economic releases. The technical bias remains bullish because of the higher high in the recent upside move.
USD/CAD Technical Analysis
As of this writing, the pair is being traded around 1.3150. A resistance can be noted around 1.3372, a trend line resistance level ahead of 1.3417, a major horizontal resistance and then 1.3548, the high of March 19th, 2018 as demonstrated in the given below chart.
On the downside, a support can be noted near 1.2818, the low of yesterday ahead of 1.2500, the psychological number and then 1.2482, a major horizontal support as demonstrated in the given above chart. The technical bias shall remain bearish unless it breaks the 1.3100 resistance level.
US Nonfarm Payrolls News
The U.S. dollar edged lower against a basket of peers on Friday, after data showed U.S. job growth slowed more than expected in July likely due to companies’ struggles to find qualified workers, and the unemployment rate declined, pointing to tightening labor market conditions.
Nonfarm payrolls increased by 157,0000 jobs last month, the Labor Department said on Friday. The economy created 59,000 more jobs in May and June than previously reported. The economy needs to create about 120,000 jobs per month to keep up with growth in the working-age population.
The dollar index, which measures the greenback against a basket of six currencies, was down 0.14 percent at 95.027. The index was about flat for the day before the release of the nonfarm payrolls data.
Considering the overall price behavior of the pair over last couple of days, selling the USDCAD around current levels can be a good decision in short to medium term.