USDCAD is snapping again larger after a stronger jobs report. Patrons again in management

The USDCAD has been trending to the upside since bottoming on October 2 close to 1.3472. The momentum during the last eight buying and selling days has taken the worth as much as a excessive of 1.37826. That took the worth to the low of the subsequent swing space goal between 1.3784 and 1.38036 (going again to April 2024 – see the crimson numbered circles on the chart under).

At this time, the Canadian jobs information got here out stronger than anticipated, and the worth of the USDCAD fell (larger CAD). The value did transfer again under the 61.eight% retracement of the transfer down from the August excessive. That degree is available in at 1.3745. Nevertheless, the momentum couldn’t be sustained, and the worth has snapped again larger. Going ahead, it could take a transfer again under 61.eight% retracement to present the sellers extra consolation.

Is promoting over? What would enhance the bullish bias as soon as after the sharp transfer decrease?

Will the stronger quantity not section the Financial institution of Canada rate-cutting agenda?

Drilling to the 5-minute chart under, the worth motion late yesterday noticed the worth transfer again down to check the rising 200 bar MA (inexperienced line on the chart under).

IN the Asian session tdday, the worth moved under that decrease MA line, however the momentum decrease was not robust. As an alternative, the worth traded larger with the MA line (see inexperienced line on the chart under) after which moved above the 2 shifting averages and used the MA ranges as a springboard to larger ranges forward of the roles report.

When the employment information got here in stronger than anticipated, the worth fell sharply under these shifting averages, however has since snapped again larger. The rebound has taken worth again towards and now above these shifting averages.That has the shorts scratching their heads and protecting shorts. The patrons are again in management above these MAs.

The query going ahead is can the worth keep above these shifting averages? if it might, there may very well be some head-scratching and extra brief protecting with the degrees off the Four-hour chart as much as 1.3803. If the worth, can not get above – or fails on the break above – the sellers are nonetheless “in play” and we’ll see extra draw back probing with the 100/200 bar MAs on the 5-minute chart, and the 61.eight% retracement off the four-hour chart at 1.3745 as targets wanted to be damaged to extend the bearish bias.

This text was written by Emma Wang at www.ubaidahsan.com.



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