USDCAD: Loonie Consolidates Ahead of Labor Market Data

11 / 05 / 2018
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The USDCAD pair was seen without any daily change during the London session on Friday and was hovering around 1.2760 in the morning.

Investors will eye today’s Canadian labor market numbers. The net employment change is forecast to print 17,800, down from 32,300 previously, while the unemployment rate is expected to remain unchanged at 5.8%. The Canadian dollar could be volatile after this release.

From the US dollar perspective, the University of Michigan consumer sentiment gauge is due and should ease slightly to 98.4 from 98.8 previously. Moreover, consumer inflation expectations should stay at 2.7% year-on-year.

The USDCAD pair is now dropping toward the key support of 1.2670, where the previous highs and lows are converged, along with the 100 day moving average. If the pair drops below, the next stop could be at the 200 day moving average around 1.2635, where the 200 day moving average is seen.

On the upside, the resistance is at 1.2820, where last week’s lows are converged with the 50 day moving average. If today’s data disappoint, the USDCAD pair could jump back beyond this level. In all cases we strongly recommend to have rigorous money and risk management.

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