EUR/USD 1.14423
0.579%
Gold 4127.94
2.404%
Oil 67.452
-0.844%
USD/JPY 160.904
-1.031%
GBP/USD 1.33622
0.662%
GBP/JPY 215.008
-0.364%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On Thursday, July 2nd, the German DAX 30 index closed up 529.08 points, or 2.11%, at 25,598.19; the UK FTSE 100 index closed up 181.73 points, or 1.73%, at 10,660.07; the French CAC 40 index closed up 137.57 points, or 1.65%, at 8,474.86; the Euro Stoxx 50 index closed up 84.55 points, or 1.35%, at 6,367.05; the Spanish IBEX 35 index closed up 277.54 points, or 1.43%, at 19,684.14; and the Italian FTSE MIB index closed up 847.94 points, or 1.64%, at 52,452.50.The Stoxx Europe 600 index closed up 1.43% at an all-time closing high.Brazilian Automobile Dealers Association: Brazils car sales in June totaled 272,466 units.Goldman Sachs (GS.N): Will provide funding for "Trump accounts" for eligible children of its employees.July 2nd - Russia hinted that Ukraine may have used a long-range ballistic missile in actual combat for the first time. The Russian Ministry of Defense stated that in the past 24 hours, air defense forces shot down a "long-range tactical ballistic missile," along with seven guided bombs and 602 fixed-wing drones. The Ministry of Defense did not disclose the specific type of the weapon or provide any further details. Ukraine has not publicly confirmed the use of a ballistic missile. Previously, the Ukrainian defense company Fire Point stated that its FP-9 ballistic missile was about to undergo flight testing. The companys chief designer, Denis Stielemann, stated in June that after the engine development was completed, testing might begin this summer or early autumn. Fire Point stated that the missile has a range of approximately 850 kilometers and is designed to strike targets deep within Russian territory.

As investors wait for US/Canada employment data, the USD/CAD trading range is limited to 40 pips

Daniel Rogers

Apr 06, 2023 13:36

 USD:CAD.png

 

The USD/CAD pair retraced below 1.3450 in the early Asian session as the US Dollar Index (DXY) lost upside momentum after reaching the key resistance level of 102.00. As investors anticipate the release of the United States/Canada Employment data, the Canadian dollar is expected to deliver a dazzling performance.

 

As a consequence of a decline in Job Openings and sluggish additions of new positions, as measured by Automatic Data Processing, firms have slackened recruitment efforts, thereby alleviating the tight US labor market. (ADP). This has led to expectations that the Federal Reserve (Fed) will keep interest rates unchanged at its May meeting.

 

In the interim, S&P500 futures have resumed their downward trend, indicating a cautious market sentiment.

 

Employment data will influence the Canadian Dollar. The consensus estimate for Net Change in Employment is 12K, which is a decrease from the previous release of 21.8K. The estimated unemployment rate is 5.1%, up from 5.0% previously.

 

The USD/CAD exchange rate is exhibiting an Inverted Flag pattern on an hourly time frame. The Inverted Flag is a trend-following pattern that consists of a protracted consolidation followed by a decline. Participants prefer to enter an auction after a bearish bias has been established, and current vendors increase their position size during the consolidation phase of a chart pattern.

 

The Canadian dollar was unable to maintain a position above the 50-period Exponential Moving Average (EMA) at 1.3458, indicating that further declines are imminent.

 

Meanwhile, the Relative Strength Index (RSI) (14) has an upper limit of 60.00. A violation of the unfavorable 20.00-40.00 range will trigger downward momentum.

 

A break below the low of April 04, 1.3406, would expose the asset to a fresh six-week low around 1.3350, the low of February 6 followed by round-number support at 1.3300.

 

In an alternative scenario, a move above the psychological resistance of 1.3500 would lend momentum to US Dollar supporters, propelling the asset toward the 31- and 29-March highs of 1.3559 and 1.3619, respectively.


Suggestion