The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Wednesday, increasing the price of USDCAD to more than 1.3600 following some key economic releases. The technical bias remains bullish because of the lower high in the recent downside move.
USD/CAD Technical Analysis
As of this writing, the pair is being traded around 1.3639. A resistance can be noted around 1.3685, the trendline resistance ahead of 1.4000, the psychological number and then 1.4687, the key horizontal resistance as demonstrated in the given below chart.
On the downside, a support can be noted near 1.3371, the horizontal support level ahead of 1.3216, the trendline support and then 1.2676, the confluence of a horizontal and trendline support level as demonstrated in the given above chart. The technical bias shall remain bullish unless 1.3371, the major horizontal support level remains intact.
United States Nonfarm Payrolls
Non-farm payrolls in the United States increased by 201 thousand in August of 2018, as compared to 147 thousand in during the month before and above market expectations of 191 thousand. Employment increased in professional and business services, healthcare, wholesale trade, transportation and warehousing, and mining.
Non-Farm Payrolls in the United States averaged 126.88 Thousand from 1939 until 2018, reaching an all-time high of 1115 Thousand in September of 1983 and a record low of -834 Thousand in October of 1949. Generally speaking, increasing payrolls numbers indicates a bullish trend for the US Dollar (USD) whereas decreasing numbers suggest a bearish market for the US Dollar (USD).
Trade Idea
Considering the overall price behavior of the pair over the last couple of days, buying the USDCAD around current levels can be a good decision in short to medium term.