USD/CAD Price Analytics: Gains momentum near 1.3550 as fear of the US NFP rises

Market Analytics and Considerations

Key Notes

• The tendency to take less risk has been supported by growing apprehension before the release of the US NFP.
• The initial rises in S&P500 futures have decreased, reflecting a pessimistic market tone.
• The CAD asset’s upward is limited by 1.3700, and its bottom is constrained by 1.3500.

After falling to about 1.3550 in the early European session, the USD/CAD combination has progressively regained. As interest has changed in support of safe investments, the CAD asset has noticed a decent demand. Additionally, the US Dollar Index (DXY) have scaled close to the significant barrier of 105.00 as market players’ concern has risen in anticipation of the release of the United States Nonfarm Payrolls (NFP) statistics.

As investors choose to hold off on holding positions in US stocks before the announcement of the jobs statistics, rises in the S&P500 futures that were registered in earlier Asia have been greatly reduced.

An examination of USD/CAD on a 4 period reveals that the asset’s upswing is constrained by a horizontal resistance band around 1.3700, which itself was drawn as from top of Dec 7; conversely, the asset’s bottom is constrained by a demand band inside the 1.3480–1.3500 zone. Given that the CAD pricing and the 50-period Exponential Moving Average (EMA) at 1.3567 overlap, a trading range structure is present.

Additionally, the Relative Strength Index (RSI) (14) is fluctuating between 40.00 and 60.00, indicating that traders are searching for a fresh stimulus before opening new positions.

The US Dollar will gain and the CAD will go toward the tops of October 25 at 1.3748 and Nov 3 around 1.3808 with a significant separation over the December 16 top near 1.3700.

On the other hand, after giving up the psychological support of 1.3500, the significant might decline to its peak from November 23 at 1.34. Subsequently, the CAD asset will indeed be susceptible for more fall approaching the December 5 low at 1.3385 if a sliding occurs under 1.3440.

Technical Picture