The US Dollar (USD) is continuously losing its value against the Canadian Dollar (CAD) after a lower figure is recorded with respect to stats released by the Department of Labor, United States. Following a bearish trend, it is likely to plunge down even more.

Although, the “US Department of labor” has released its stats showing a slight decrease in the overall jobless claims made by people in the United States. However,  it decreased even more compared to the stats of the month before. It is considered as one of the significant indicators which unhides the expansion of tightness of the labor market in the United States. A higher reading is seen as a bullish for the US Dollar (USD) and whereas a low reading signals a bearish market for the US Dollar (USD).

By the way, the economic bureau of the US shows positive market conditions.  It is to be noted that the Bureau of Economic Analysis and the U.S. Census Bureau release all the figures after taking into account the demand for exchange of US goods and the demand for domestic needs.

Being a sensitive indicator, the trade balance plays a significant role in shaping up the US economy. Reading higher than the previous one shows a bullish market for the US Dollar (USD) whereas a lower reading indicates inflation and alarms devaluation of the same.

Since the US Dollar succeeded in rising up over the last week, it is anticipated that it will continue its journey following the bullish trend. The consensus of the market leaders also seems on a positive edge with a predicted value of 0.2%.

Conclusion

Trading the USDCAD at current levels may be a better idea to start with. However, traders are advised to remain cautioned as the pair can get a reversal as well due to key horizontal resistance which may come across the pair around 108.46.