USDCAD Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | -0.23% | -31.7 Pips |  |
||
| Week to-date | -0.11% | -14.5 Pips |  |
||
| October | -0.28% | -37.6 Pips | |
||
Upcoming key events (London Time)
No major events for the day.
What happened lately
The U.S. Job Openings and Labor Turnover Survey (JOLTS) for August showed an increase to 8.04 million, up from a revised 7.711 million in July, as reported by the Bureau of Labor Statistics. This rise suggests a strong labor market with more job opportunities available for workers. Additionally, the U.S. Chicago Purchasing Managers’ Index (PMI) for September also experienced an uptick, reaching 46.6 points compared to 46.1 points in August. Although still below the 50-point threshold that signifies expansion, the increase indicates a slight improvement in the manufacturing sector’s economic activity.
With the rise in JOLTS numbers signifying a tighter labor market and a marginal improvement in manufacturing indicated by the PMI, the economic outlook for the United States appears cautiously optimistic. This could contribute to expectations of a stronger U.S. dollar due to anticipations of potential monetary tightening by the Federal Reserve to curb inflationary pressures. However, on Tuesday, the USDCAD pair dropped by 0.23% to 1.34943. This depreciation of the U.S. dollar against the Canadian dollar suggests other influencing factors may be at play, such as differing economic conditions or commodity price movements, particularly oil that greatly impacts the Canadian economy. No major economic events are scheduled for the day, meaning the market may largely react to broader sentiments and previous economic data.
Latest from X (Twitter)
What can we expect from USDCAD today?
USDCAD on Tuesday dropped -0.23% to 1.34943. Price is below 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCAD looks bearish as the pair posted lower in Tuesday trading session.
Looking ahead for the day, immediate support level is at S1 1.34677 with break below could see further selling pressure towards S2 at 1.3441. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.35396 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.34770 would indicate selling pressure.
For the week to-date, take note that USDCAD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.35929 |
| R2 | 1.35662 |
| R1 | 1.35303 |
| Daily Pivot | 1.35036 |
| S1 | 1.34677 |
| S2 | 1.3441 |
| S3 | 1.34051 |
#USDCAD Trending on Twitter
[custom-twitter-feeds hashtag=”#USDCAD” num=3 showheader=false]