USD/CAD Stays Subdued

The rush to obtain U.S. dollar funding during the max of market distress (as seen in March and early April) has largely faded...


Last Friday, the April U.S. jobs report came out not as ugly as expected (a reduction of 20.500 million Nonfarm Payrolls vs. -22.000 million expected, jobless rate soaring to 14.7% vs. 16.0% expected), the Canadian economy shed 1.99 million jobs (vs. -4.00 million expected) with a jobless rate of 13.0% (vs. 18.1% expected) --.also not as grim as expected.

As virus-hit countries and U.S. states gradually relax coronavirus-induced restrictions and reopen their economies, market sentiment has been boosted.

And the rush to obtain U.S. dollar funding during the max of market distress (as seen in March and early April) has largely faded.

On an Intraday 30-minute Chart, USD/CAD remains on the downside after retreating from a high of 1.4173 seen on May 7.

Source: GAIN Capital, TradingView

In fact, USD/CAD is trading within a Bearish Channel having confirmed a Bearish Pattern of Lower Highs.

Currently it has swung to the Lower Bollinger Band keeping the intraday outlook as bearish.

A Key Resistance is located at 1.3945 (around the Upper Bollinger Band).

Trading below this key Resistance, USD/CAD is expected to Seek Support at 1.3880 and 1.3845 on the downside (both levels last seen at end-April).

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account