- USD/CAD is oscillating in a tad wider range ahead of labor market reports.
- The market mood remains upbeat as investors shrug off volatility triggered by Fitch’s downgrade.
- USD/CAD reaches near the horizontal resistance plotted around 1.3387.
The USD/CAD pair rebounds after a modest corrective move to near 1.3330 in the London session. The Loonie asset is expected to remain sidelined as investors are awaiting the employment data of the United States and Canada.
US Unemployment Rate is seen steady at 3.6% while Canada’s jobless rate could increase to 5.5% vs. the former release of 5.4%. The US Dollar Index (DXY) manages to remain well supported above the immediate support of 102.40. Meanwhile, the market mood remains upbeat as investors shrug off volatility triggered by Fitch’s downgrade to the US government's long-term debt rating.
On Thursday, US Services PMI and its forward demand underperformed expectations as the burden of high inflation squeezes deep pockets of households. The labor cost index is growing at a slower pace, reducing the spending capacity of individuals.
After a vertical north-side move, the USD/CAD pair reaches near the horizontal resistance plotted from July 07 high around 1.3387 on a four-hour scale. Upward-sloping 20-period Exponential Moving Average (EMA) at 1.3322 indicates that the bullish bias is extremely solid.
The Relative Strength Index (RSI) (14) climbs into the bullish range of 60.00-80.00, which indicates that the upside momentum is already active.
A decisive break above the July 07 high around 1.3387 would open a fresh upside, which will drive the asset towards the June 7 high at 1.3427, followed by the psychological resistance of 1.3500.
In an alternate scenario, a downside move below July 18 high at 1.3288 would drag the asset toward July 27 low around 1.3160 and July 14 low marginally below 1.3100.
USD/CAD four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats from fresh multi-year highs, holds above 1.1000
EUR/USD neared 1.1150 in the European session on Thursday, shedding roughly 100 pips afterwards. The Euro holds on to solid gains amid broad US Dollar weakness, after US President Trump unveiled aggressive tariffs on the "Liberation Day." Markets await mid-tier US data releases.
GBP/USD surges to multi-month tops near 1.3200 ahead of US data
GBP/USD paused its rally after briefly surpassing the 1.3200 mark, yet holds on to most of its intraday gains. The US Dollar plunged to a fresh YTD low amid worries about a tariff-driven US economic slowdown, lifting Fed rate cut bets and weighing on the Greenback. The focus now remains on the US data for further impetus.
Gold retreats below $3,100 from all-time peak
Gold price extends its steady intraday pullback from the all-time peak touched this Thursday, and pierces the $3,100 mark in the European session. Bullish traders opt to take some profits off the table and lighten their bets around the commodity amid slightly overbought conditions.
SOL is the winner as Solana chain turns into battleground for meme coin launchpad and DEX
Solana (SOL) gains nearly 2% in the last 24 hours and trades at 118.28 at the time of writing on Thursday. A Decentralized Exchange (DEX) and a meme coin launchpad built on the Solana blockchain have waged a war for users and compete for the trade volume on the chain.
Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.