Key Points
- The US Dollar started a new downside wave from the 1.2900 swing high against the Canadian Dollar.
- There is a major bearish trend line forming with resistance at 1.2800 on the hourly chart of USDCAD.
- Recently in Canada, the employment Change in Oct 2017 was released by the Statistics Canada.
- The outcome was above the forecast of 15.0K as there was a change in the employment by 35.3K.
USDCAD Technical Analysis
The US Dollar was seen gaining pace towards 1.2950 recently against the Canadian Dollar, but it faced heavy sell offers near 1.2900. The USDCAD pair started a downside move and broke a few important support such as 1.2840 and 1.2800 to settle below the 21 hourly simple moving average.
The pair traded as low as 1.2715 and later started correcting higher. At present, it is testing the 50% Fib retracement level of the last decline from the 1.2835 high to 1.2715 low.
However, there is a major bearish trend line forming with resistance at 1.2800 on the hourly chart, and the 61.8% Fib retracement level of the last decline from the 1.2835 high to 1.2715 low is near 1.2790 to act as a resistance in the near term.
Canada’s Employment Change
Recently in Canada, the employment Change in Oct 2017 was released by the Statistics Canada. The market was positioned for a change in the employment by 15K.
The actual result was above the forecast of 15.0K as there was a change in the employment by 35.3K. It was also more than the last change of 10K. The report added that:
Employment increased by 35,000 in October, and the unemployment rate rose 0.1 percentage points to 6.3%. Employment gains in the month were driven by full-time work (+89,000), while fewer people worked part time (-53,000).
Overall, the USDCAD may correct a few pips more, but most likely to face sellers near 1.2800 in the near term.
