Home Markets USD/CAD hits two-week highs ahead of US and Canada employment report.

USD/CAD hits two-week highs ahead of US and Canada employment report.

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USD/CAD hits two-week highs ahead of US and Canada employment report.
  • The dollar posts modest gains across the market ahead of key events.
  • July employment report is coming from Canada and the US.
  • USD/CAD is close to 1.2900, although it will all depend on the data.

The USD/CAD is rising on Friday ahead of Canadian and US employment data. and trades at 1 1/2 week highs at 1.2895. The pair maintains a bullish bias although high volatility is expected.

At 12:30 GMT, the employment reports for Canada and the US will be published simultaneously. An increase in employment of 20,000 is expected in the former, after the fall of 43,200 in June, and a rise in the unemployment rate at 5.0%. Then it will be the turn of PMI Ivey.

The market consensus points to an increase in non-farm payrolls of 250,000. This would imply a slowdown, but still a healthy market. The expectation is that the unemployment rate will remain at 3.6%.

It is expected that the volatility increases with the data. In the previous a certain calm predominates. Although the dollar rises, it does so modestly. USD/CAD is at its highest since July 27, up less than 40 pips. To the upside, major resistance lies ahead around 1.2900, above which further upside would be expected, with the next barrier at last week’s highs at 1.2945.

In the opposite direction, at 1.2855 the nearest significant support can be found. Below is 1.2830, before 1.2800. A daily close clearly below 1.2800 would send a signal of weakness ahead for USD/CAD possibly leading to new lows in months.

Technical levels

USD/CAD

Panorama
Last Price Today 1.2875
Today’s Daily Change 0.0010
Today’s Daily Change % 0.08
Today’s Daily Opening 1.2865
Trends
20 Daily SMA 1,291
50 Daily SMA 1,286
100 Daily SMA 1.2782
200 Daily SMA 1.2733
levels
Previous Daily High 1.2876
Previous Daily Minimum 1.2818
Previous Maximum Weekly 1.2947
Previous Weekly Minimum 1.2789
Monthly Prior Maximum 1.3224
Previous Monthly Minimum 1.2789
Daily Fibonacci 38.2% 1.2854
Daily Fibonacci 61.8% 1,284
Daily Pivot Point S1 1,283
Daily Pivot Point S2 1.2795
Daily Pivot Point S3 1.2772
Daily Pivot Point R1 1.2888
Daily Pivot Point R2 1.2911
Daily Pivot Point R3 1.2946

Source: Fx Street

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