FX.co ★ USD/CAD Undecided Ahead Of US Non-Farm Payrolls!

USD/CAD changed little in the last hours because traders are waiting for the US and Canadian data before taking action. You should be careful today as the volatility will be high and the pair could register sharp movements in both directions.

Canada is due to release the Employment Change which is expected at 148.5K versus 230.7K in the previous reporting period, while the Unemployment Rate is expected to drop from 7.8% to 7.4%.

Still, the US Non-Farm Employment Change is seen as the most anticipated indicator today. Analysts have predicted the NFP at 870K, higher versus 850K in the previous reporting period. The Unemployment Claims could drop from 5.9% to 5.7%, while the Average Hourly Earnings are expected to increase by 0.3%.

USD/CAD Needs A Bearish Spark!

USD/CAD has found support on the 38.2% retracement level registering only false breakdowns below it and under the pivot point (1.2497). Technically, the pair was somehow expected after registering a false breakout through the uptrend line and above the R1 (1.2574). It remains to see what will really happen as the fundamentals will drive the price even if the bias is still bearish.

Technically, a new lower low, a drop below 1.2474 could signal a further drop. The outlook is bearish as long as the price stays under the third warning line (WL3). Only breaking above it could signal a further upside movement.

Outlook!

USD/CAD could drop deeper if it falls and stabilizes under the 38.2% retracement level and below the pivot point (1.2497). 1.2400 and the S1 (1.2393) are seen as immediate downside targets, obstacles.