USDCAD long term rebound at risk
Gary Christie October 8, 2020 4:45 PM
The pair breaks below a key moving average with momentum.
The US Dollar was bearish against all of its major pairs on Thursday. On the US economic data front, Initial Jobless Claims declined to 840K for the week ending October 3rd (820K expected), from a revised 849K in the week before. Finally, Continuing Claims dropped to 10,976K for the week ending September 26th (11,400K expected), from a revised 11,979K in the prior week.
On Friday, Wholesale Inventories for the August final reading are expected to rise 0.5% on month, in line with the August preliminary reading.
The Euro was bearish against all of its major pairs. In Europe, The German Federal Statistical Office has posted August trade balance at 12.8 billion euros surplus (vs 16 billion euros surplus expected). The Bank of France has released Industry Sentiment Indicator for September at 101 (vs 105 expected).
The Australian dollar was bullish against most of its major pairs with the exception of the CAD.
WTI Crude Oil jumped $1.33 (+3.33%) to $41.28.
The USDCAD posted the largest moves on the day declining 58 pips to 1.3198 in Thursday's trading. The rebound that started in September is at risk after a rising broadening wedge took shape. The pair broke back below the 20 and 50 day moving averages. Momentum looks to favor the downside towards 1.30 support. A break above 1.335 resistance would be a bullish signal for an attempt to break 1.342 resistance on the rebound.
Source: GAIN Capital, TradingView
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