Baxia Markets
September 08, 2023

USDCAD Nearing a Critical Showdown at Key Resistance Levels

market analysis header imageUSDCAD initiated Friday's trading session with a notable bullish correction, fueled by economists' optimistic forecasts for Canada's employment change in August 2023. Projections suggest a substantial improvement, with an anticipated 15,000 employment change compared to the previous -16,400. This downward corrective swing also reflects the market's inclination to attract potential buyers before embarking on a quest for a new higher high, particularly with respect to crucial resistance levels.USDCAD Nearing a Critical Showdown at Key Resistance LevelsUSDCAD Nearing a Critical Showdown at Key Resistance Levels

USDCAD Technical

Delving into the 1-hour timeframe chart, the pivotal resistance zone lies within the boundaries of 1.37656-1.38618, denoted by a conspicuous red rectangle. Meanwhile, key levels support are established at 1.36501-1.36318, demarcated within an orange rectangle. The continued positioning of the EMA 50 above the EMA 200 underscores the prevailing bullish control over the market. Additionally, the MACD signal maintains a stance above the zero line, further fortifying the overarching bullish trend.

Key Economic Releases to Monitor:

  1. Canada's Employment Change for August 2023: Projections indicate a positive shift of 15,000 jobs, contrasting the prior -16,400.

  2. Canada's Unemployment Rate for August 2023: Forecasts suggest a rate of 5.6%, a modest increase from the previous 5.5%.

  3. US Wholesale Inventories for July 2023 (Preliminary): Expectations hover around a marginal decrease of -0.1%, mirroring the preceding -0.1% figure.

These economic releases promise to be pivotal factors shaping market dynamics and warrant vigilant observation throughout the trading day.

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