Canadian Dollar Price Forecast, CAD, USD/CAD Talking Points:
- USD/CAD[1] pushed down to a fresh three-week-low this morning.
- Canadian employment numbers came out strong, beating expectations on both the headline print and the unemployment rate.
- The analysis contained in article relies on price action[2] and chart formations[3]. To learn more about price action or chart patterns, check out our DailyFX Education[4] section.
It’s been a rough week for the US Dollar[5]; and given the addition of some CAD[6]-strength, helped along by higher Oil[7] prices, USD[8]/CAD has pushed down to a fresh three-week-low. This morning also brought out the release of Canadian employment numbers which, by and large, printed with some positivity. The Canadian economy added 378.2k jobs versus an expectation of 156.6k; and the unemployment rate of 9% beat the expectation for a 9.7% print and was well inside of last month’s 10.2% read.
That employment report helped to bring an impulse move into the pair as price action pushed down to a fresh three-week low until, eventually, USD/CAD found support around a familiar Fibonacci level, plotted around the 1.3148 area on the chart, which is the 88.6% retracement of the 2020 move in the pair.
USD/CAD Hourly Price Chart
Chart prepared by James Stanley[9]; USDCAD on Tradingview[10]
This zone of support had previously helped to establish a short-term bullish trend in USD/CAD. As discussed previously, USD/CAD presented a pretty attractive venue for trading themes around the USD, particularly as the September reversal began to play through. After a near-six-month bout of weakness, both USD and USD/CAD spent much of September trending higher. In USD/CAD, this zone of
