USDCAD
On Friday, USD/CAD fell by 0.11%, with the USD falling behind its global rivals. As of writing, the pair was trading at 1.3489, just above the crucial support level of 1.3442.
The US created 140,000 jobs in August, less than the analysts’ median estimates of 1640,000 new jobs. The dollar’s weakness can be linked to underwhelming jobs data, which failed to provide the necessary lift for the greenback.
The 1.3829 level has acted as a strong ceiling, rejecting multiple bullish attempts recently. Every time the price neared this level, sellers stepped in, pushing it lower. This level now serves as a key barrier to any significant upside movement.
The support around 1.3442 has been tested several times since May, and it has held firm, keeping the price within the current range. A break below this level could trigger further bearish momentum, potentially targeting lower support zones.
The sharp drop from the 1.3829 peak in early August indicates weakening bullish strength. The bears are in control, driving the pair lower with a steady stream of selling pressure.If the 1.3442 fails to hold, a downward momentum will happen.
A breakout above 1.3601 is crucial for bulls to take charge, with further push needed to test the 1.3829 resistance. On the flip side, if the U.S. dollar continues to weaken, a drop below 1.3442 could lead to further downside, with the next support at 1.3300.
This post was last modified on Sep 06, 2024, 15:13 BST 15:13