Key Points
- The US Dollar after trading as low as 1.3009 against the Canadian Dollar started a correction.
- The USDCAD pair has a bearish trend line with resistance at 1.3090 on the hourly chart.
- In the US, the Initial Jobless Claims for the week ending Feb 11, 2017 was released by the US Department of Labor.
- The result was above the forecast, as the claims came in at 239K, vs the 245K forecast.
USDCAD Technical Analysis
The US Dollar was under pressure this week against the Canadian dollar and traded below 1.3100. Later, the USDCAD pair after trading as low as 1.3009 started a recovery. The pair moved above the 38.2% Fib retracement level of the last decline from the 1.3120 high to 1.3009 low.
However, the pair failed to settle above the 61.8% Fib retracement level of the last decline from the 1.3120 high to 1.3009 low, and moved down. It is now back below the 21 hourly simple moving average, and could trade back towards 1.3040.
On the upside, above 1.3080, there is also a bearish trend line with resistance at 1.3090 on the hourly chart, waiting to act as a resistance if the pair moves higher once again.
US Initial Jobless Claims
Today in the US, the Initial Jobless Claims for the week ending Feb 11, 2017 was released by the US Department of Labor. The market was expecting the number of people filing first-time claims for state unemployment insurance to rise from 234K to 245K.
The result was above the forecast, as the claims came in at 239K, vs the 245K forecast. The report added the “4-week moving average was 245,250, an increase of 500 from the previous week’s revised average. The previous week’s average was revised up by 500 from 244,250 to 244,750”.
Overall, the USDCAD might have completed a correction near 1.3085, and could move down once again.
