The US Dollar (USD) inched lower against the Canadian Dollar (CAD) on Friday, decreasing the price of USDCAD to less than 1.3000 following some key economic releases. The technical bias remains bearish because of the lower low in the recent downside move.
USD/CAD Technical Analysis
As of this writing, the pair is being traded around 1.2921. A support can be noted around 1.2886, a key horizontal support level ahead of 1.2800 the psychological number and then 1.2781, the major horizontal support as demonstrated in the given below chart.
On the upside, a resistance can be noted near 1.2951, the major horizontal resistance level ahead of 1.3022, the trendline resistance and then 1.3056, the 61.8% Fib level resistance as demonstrated in the given above chart. The technical bias shall remain bearish unless it breaks the 1.2951 the major horizontal resistance level.
US 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.
Trade Idea
Considering the overall price behavior of the pair over the last couple of days, selling the USDCAD around current levels can be a good decision in short to medium term.