USD/USD Forecast — US Dollar to Decline Further Vs Canadian Dollar
- - The US Dollar is likely forming a short-term top near the 1.2685 level against the Canadian Dollar.
- - There was a break below a key expanding triangle support at 1.2575 on the hourly chart of USD/CAD.
- - Recently in Canada, the Net Employment Change in Dec 2017 was released by the Statistics Canada.
- - The outcome was below the forecast of 10.0K as the change in employment was -88.0K.
Canadian Net Employment Change
Recently in Canada, the Net Employment Change in Dec 2017 was released by the Statistics Canada. The market was positioned for a change of 10K in Dec 2017 compared with the last change of 78.6K.
However, the actual result was below the forecast of 10.0K as the change in employment was -88.0K. Moreover, the last reading was also revised down from 78.6K to -2.4K. More importantly, there was a rise in the employment rate from 5.7% to 5.9%. The report added that:
Following two months of increases, employment fell by 88,000 in January. Part-time employment declined (-137,000), while full-time employment was up (+49,000). At the same time, the unemployment rate increased by 0.1 percentage points to 5.9%.
The USD/CAD pair spiked above the 1.2650 level, but it faced sellers near 1.2685 level and declined later.
USD/CAD Technical Analysis
The US dollar was in a major uptrend this past week as it moved above the 1.2600 level against the Canadian Dollar. The USD/CAD pair gained traction and traded as high as 1.2685 where it faced a strong selling interest.
The pair started a downside move and traded below the 23.6% Fib retracement level of the last wave from the 1.2397 low to 1.2685 high. Moreover, there was a break below a key expanding triangle support at 1.2575 on the hourly chart.
The pair traded below the 1.2560 support and is currently testing the 100 hourly simple moving average. It may soon test or even break the 50% Fib retracement level of the last wave from the 1.2397 low to 1.2685 high at 1.2540.
Below 1.2540, the pair may decline further and it could retest the 1.2500 support area. On the upside, the 1.2580 and 1.2600 levels are important resistances for an upward move.
Originally published at — ForexGator.com.