USD/CAD Slips as Canadian Labor Market Surges: Impact on Forex..USD/CAD Slips as Canadian Labor Market Surges: Impact on Forex and Global Markets
Introduction
The USD/CAD currency pair experienced a significant decline, nearing the 1.3600 mark, following the release of robust labor market data by Statistics Canada. This unexpected surge in Canadian employment figures has sent shockwaves through the forex market and has implications for global investors. In this article, we will delve into the details of this development and explore the broader economic landscape that surrounds it.
Canadian Labor Market Surprises
Statistics Canada's latest report revealed that the Canadian labor market witnessed an impressive increase of 39.9K payrolls in August, surpassing expectations, which were set at a more modest 15K. This remarkable uptick follows a retrenchment of 6.4K in July, showcasing the resilience of the Canadian economy. Moreover, the unemployment rate held steady at 5.5%, defying forecasts that anticipated a slightly higher jobless rate of 5.6%.
One noteworthy aspect of this report is the increase in the Annual Average Hourly Wages, which rose to 5.2%, exceeding the previous release of 5.0%. Such robust wage growth has the potential to boost consumer spending and maintain inflationary pressures, potentially prompting the Bank of Canada (BoC) to consider raising interest rates. This move would come after a pause in rate hikes during the past two policy meetings, signaling a potential shift in monetary policy.
Global Market Impact
As the USD/CAD pair faced intense selling pressure due to the strong Canadian labor market data, other global markets exhibited mixed sentiments. The S&P500 was expected to open with a relatively flat performance, reflecting mixed cues from overnight futures. This indecisiveness is mirrored in the strength of the US Dollar Index (DXY), which remains well-supported near the 105.00 resistance level. Investors find themselves caught between global uncertainty and the possibility of a Federal Reserve (Fed) policy adjustment during the September meeting.
The Strength of the US Dollar
The strength of the US Dollar is a critical factor in the ongoing forex dynamics. The United States' economy continues to demonstrate resilience, primarily attributed to cooling inflation and stable labor growth. Chicago Fed Bank President Austan Goolsbee articulated the central bank's goal of achieving a "golden path," characterized by a reduction in inflation without triggering a recession. This stance contributes to the US Dollar's firm footing in the global currency market.
Furthermore, the US job market is displaying signs of strength, with jobless claims consistently falling below expectations for the third consecutive week. The latest report from the US Department of Labor indicated that first-time jobless benefit claims dropped to 216K for the week ending September 1, surpassing expectations, which were set at 234K and below the previous figure of 229K.
Conclusion
The unexpected surge in Canadian labor market data has sent ripples across the forex market and impacted global investor sentiment. As the USD/CAD pair faces downward pressure, other markets remain cautiously optimistic, reflecting the ongoing uncertainty in the global economic landscape. The strength of the US Dollar, supported by resilient economic indicators, continues to play a pivotal role in shaping forex dynamics. Additionally, the US job market's consistent improvement contributes to the overall stability of the United States' economy. As investors navigate this complex terrain, they must remain vigilant and adaptable in response to evolving economic developments.
CAD
USDCAD Beautiful long-term pattern tells you what to do next.The USDCAD pair has been on a relentless bullish run since the week of July 10 after almost touching the 1W MA200 (orange trend-line) and making a bottom on the +2 year Higher Lows trend-line. This rise will now face the first selling pressure point, the Lower Highs trend-line of the October 10 2022 High.
Following a 1W MACD Bullish Cross, if a 1W candle closes above this Lower Highs trend-line, we can see a hyper-aggressive rally towards the 1.46900 Resistance. In that case, we will buy the closing and target 146500.
If however the candle gets rejected and closes instead below the Lower Highs trend-line, we will sell towards the Higher Lows trend-line again and target 1.32550.
The pattern technically resembles the December 2018 - February 2020 sequence, which was also rising on Higher Lows, had a correction under Lower Highs and after hitting the 1W MA200 and breaking below the Higher Lows, it shot upwards to the 1.46900 Resistance.
Basically the wider outlook (big picture) of USDCAD is very informative for long-term trend projections as it is quite symmetric, trading within a 1.46900 Resistance and 1.20180 Support since January 2016.
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NZDCAD: Curve Analysis (2W)📉 Based on the 2-week chart of NZDCAD, the pair is currently trading in a descending triangle pattern. This is a bearish pattern that suggests that the price is likely to continue to decline. The price has been making lower lows and lower highs within the triangle, which is a sign of weakness. Both the Simple and the Exponential 200-day moving averages are also sloping downwards, which further supports the bearish trend.
📉 Price Action (PA) is currently reacting from Resistance @ 0.8075
📈 The next support level for NZDCAD is around 0.7930. If the price breaks below this level, it could decline to 0.7760 or even lower. However, if the price bounces off the first support level, it would be an odds enhancer that Price Action has returned to its BIG PICTURE uptrend.
✍️ Overall, the technical analysis for NZDCAD is bearish. The descending triangle pattern suggests that the price is likely to continue to decline. Since this is highly probable, I have a pending BLO @ 0.7950.
⚠️ HIGH RISK OPPORTUNITY
SSO @ 0.8050
TP @ 0.7955
BLO @ 0.7950
If the CAD News @ 08:30 ET / 05:30 PT proves to be strong, then we'll experience the downtrend that appears to be on the horizon for this pair.
AUDCAD: Curve Analysis (2D)SLO2 @ 0.9495 ⏳
SLO1 @ 0.9400 ⏳
TP4 @ 0.9356 (closing ALL Buy Orders)
TP3 @ 0.9185 (shaving 25%)
TP2 @ 0.9080 (shaving 25%)
TP1 @ 0.8920 (shaving 25%)
BSO @ 0.8766 ⏳
BLO @ 0.8666 ⏳
PA is officially trading in the Demand Zone.
It appears that the DT retracement is over
We should see this oversold instrument reverse in our favor towards the upside
NZDCAD Potential DownisdesHey Traders, in today's trading session we are monitoring NZDCAD for a selling opportunity around 0.80350 zone, NZDCAD is trading in a downtrend and currently is in a correction phase in which it is approaching the trend at 0.80350 support and resistance area.
Trade safe, Joe.
USDCAD: Best sell signal since March.USDCAD is trading inside a Channel Down pattern that has almost completed 11 months of trend. The technicals on the 1D time-frame are overbought (RSI = 70.266, MACD = 0.007, ADX = 57.395) and that enhances the sell sentiment as the price approaches the top of the Channel Down.
The previous LH was priced a little over the 0.786 Fibonacci level. The formation of a Bearish MA50/100 Cross was after the top was in and technically we are only a week away from the new formation.
Consequently, we treat this as a sell opportunity, waiting to sell on the 0.786 Fibonacci, targeting the 0.118 (TP = 1.32000) as the April 14th low.
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AUDCAD Potential DownsidesHey Traders, in today’s trading session we are monitoring AUDCAD for a selling opportunity around 0.87400 zone, AUDCAD was trading in an uptrend and successfully managed to break it out. Currently is in a correction phase in which it is approaching the retrace area at 0.87400 support and resistance.
Trade safe, Joe.
CADJPY, Massive Ascending-Triangle, BREAKOUT Incoming!Hello There!
Welcome to my analysis about CADJPY on the 6-hour timeframe perspectives. Within the recent times CADJPY is forming a important formation that is likely to convert into a major bearish breakout to emerge in the next upcoming times especially when huge bearish volumes move in here and accelerate the trend-turning-dynamics to the downside this is a highly likely scenario to be expect next.
When looking at my chart CADJPY is forming there this paramount Descending-Channel-Formation in which CADJPY has several massive resistances within the structure firstly overly determined by the Descending-Resistance-Boundary within the Upper-Boundary of the channel formation. Furthermore, CADJPY is now completing the wave-count within the Ascending-Triangle-Formation which is pointing to a final breakout below the lower boundary to emerge in the near terms.
With a final breakout below the lower boundary CADJPY is going to setup the final continuation-origin-setup to continue into the lower spheres of the chart and accelerate heavy bearish momentum into these directions. Once CADJPY has broken out below the 65-EMA as well as the 200-EMA marked in my chart this will be a trigger for more massive and overly bearish momentum moving in to increase the bearish continuation.
Once the final targets marked in my chart have been reached it has to be determined how CADJPY continues from there on because especially when CADJPY continues with massive increased bearish momentum there is a high possibility given that CADJPY just continues into this direction and accelerates further bearish determinations. Otherwise when this is not the case and CADJPY manages to recover within this zone there is a possibility that CADJPY reverses in this zone. These determinations need to be assessed when the price-action developed here.
In this manner, thank you everybody for watching the analysis, support from your side is greatly appreciated.
VP
USDCAD H4 | Bounce off 38.2% Fibo support?USDCAD is falling towards a pullback support and could potentially bounce off this level to climb higher.
Buy entry is at 1.36034 which is a pullback support that aligns with the 38.2% Fibonacci retracement level.
Stop loss is at 1.34850 which is a level that aligns under an overlap support level and a recent swing-low.
Take profit is at 1.37331 which is a resistance level that aligns with the 161.8% Fibonacci extension level.
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GBPCAD Potential DownsidesHey Traders, in today's trading session we are monitoring GBPCAD for a selling opportunity around 1.72200 zone, GBPCAD is trading in a downtrend and currently is in a correction phase in which it is approaching the trend at 1.72200 support and resistance area.
Trade safe, Joe.
USD/CAD: Double top beneath key swing highsUSD/CAD has risen just over 4% since its YTD low set in July. And it did so in a relatively straight line. Yet a double top has now formed on the daily chart beneath the April and May highs, with the second ‘top’ coming in the form of a bearish engulfing / outside day. This likely points to at least a minor top over the near-term. Any low-volatility moves towards 1.3600 could provide bears an improved reward to risk ratio, with 1.3500 making a viable initial target. Should US data such as GDP, ADP employment and Nonfarm payroll disappoint, we could be looking at much lower.
USDCAD - Wait For The Bears ↘️Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
on Weekly: Left Chart
USDCAD has been overall bearish trading inside the falling channel in red.
USDCAD is currently sitting around the upper trendline acting as a non-horizontal resistance, so we will be looking for trend-following sell setups.
on M30: Right Chart
USDCAD is forming a potential double top pattern but it is not ready to go yet.
For the bears to take over, we need a momentum candle close below the gray neckline.
Meanwhile, until the sell is activated, USDCAD would be overall bullish and can still trade higher.
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
USDCAD Potential UpsidesHey Traders, in today’s trading session we are monitoring USDCAD for a buying opportunity around 1.35200 zone, USDCAD was trading in a downtrend and successfully managed to break it out. Currently is in a correction phase in which it is approaching the retrace area at 1.35200 support and resistance area.
Trade safe, Joe.
GBPCAD Potential DownsidesHey Traders. In today’s trading session we are monitoring GBPCAD for a selling opportunity around 1.71300 zone, GBPCAD was trading in an uptrend and currently seems to be attempting to break it out. If we get dips below 1.71 i will be watching a potential retrace of the trend towards more lows.
EURCAD: Your Trading Plan 🇪🇺🇨🇦
EURCAD is trading within a wide horizontal trading range on a daily.
The price tested its upper boundary yesterday.
We see a strong bearish reaction to that.
Pay attention to the support of the range - the underlined green area.
If bears manage to close below that, it will be a strong bearish signal.
A bearish continuation will be expected to 1.4512 then.
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