USD/CAD Price Analysis: Picks strength around 1.3550 as anxiety soars ahead of US NFP

Advancing anxiety ahead of the US NFP release has underpinned the risk-off impulse.
S&P500 futures have witnessed a drop in their early gains, portraying negative market sentiment.
The upside in the Loonie asset is capped around 1.3700 while the downside is restricted near 1.3500.

Sagar Dua FXStreet

The USD/CAD pair has rebounded firmly after dropping to near 1.3550 in the early European session. The Loonie asset has sensed a decent demand as traction has shifted in the favor of safe-haven assets. Also, the US Dollar Index (DXY) has scaled to near the crucial resistance of 105.00, at the time of writing, as anxiety among market participants has soared ahead of the release of the United States Nonfarm Payrolls (NFP) data.

Gains recorded in the S&P500 futures in early Asia have trimmed significantly as investors are preferring in avoiding positions in the US equities till the release of the employment data for making informed decisions.

A scrutiny of USD/CAD on a four-hour scale indicates that the upside of the asset is capped around the horizontal resistance plotted from December 7 high at 1.3700 while the downside is restricted around the demand zone placed in a 1.3480-1.3500 range. The 50-period Exponential Moving Average (EMA) at 1.3567 is overlapping with the Lonnie price, which indicates a rangebound structure.

Also, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which signifies that investors are waiting for a fresh trigger for making positions.

Going forward, a decisive break above the December 16 high around 1.3700 will strengthen the US Dollar and will drive the Loonie asset toward October 25 high at 1.3748 and November 3 high at 1.3808.

On the contrary, the major could drop to November 23 high at 1.3440 after surrendering the psychological support of 1.3500. Later on, a slippage below 1.3440 will expose the Loonie asset for more downside towards December 5 low at 1.3385.

USD/CAD four-hour chart

USD/CAD

Overview
Today last price	1.3572
Today Daily Change	-0.0009
Today Daily Change %	-0.07
Today daily open	1.3581

Trends
Daily SMA20	1.3598
Daily SMA50	1.3525
Daily SMA100	1.3471
Daily SMA200	1.3143

Levels
Previous Daily High	1.3596
Previous Daily Low	1.347
Previous Weekly High	1.3612
Previous Weekly Low	1.3484
Previous Monthly High	1.3705
Previous Monthly Low	1.3385
Daily Fibonacci 38.2%	1.3548
Daily Fibonacci 61.8%	1.3518
Daily Pivot Point S1	1.3503
Daily Pivot Point S2	1.3424
Daily Pivot Point S3	1.3378
Daily Pivot Point R1	1.3628
Daily Pivot Point R2	1.3674
Daily Pivot Point R3	1.3753

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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