USD/CAD Price Analysis: Bulls await US Nonfarm Payrolls, eye 1.30s
- USD/CAD is making tracks to the upside with the 1.30s are in sight.
- The month and weekly targets are clear and Fridays Nonfarm payrolls could be the deciding factor.
USD/CAD is on the move and the bulls are in control from a longer-term perspective. The following illustrates the prospects of a run all the way into test the 1,30's in the coming days. However, US Nonfarm Payrolls will be critical in this regard.
The greenback earlier gained after US data showing initial claims for state unemployment benefits rose 28,000 to a seasonally adjusted 222,000 for the week ended Nov. 27, lower than the forecast of 240,000. Today, Payrolls probably surged again, according to analysts at TD Securities.
''A strong trend continues to be signaled by surveys and claims, but our forecast also reflects the latest Homebase data—with a decline in the Homebase series more than accounted for by seasonality. Along with our +650k forecast for payrolls, we forecast a 0.2pt decline in the unemployment rate and a 0.4%m/m (5.0% y/y) rise in hourly earnings.''
USD/CAD monthly chart
The bulls are in charge and there is overhead resistance that could be tested in the coming days near 1.2995.
USD/CAD weekly chart
The weekly outlook has the price on the verge of making a W-formation. There needs to be some more upside, however. The bulls can target the key monthly resistance at 1.3050 once 1.30 is cleared. On the flip side, the W-formation would be expected to attract bears in to test the neck line near 1.2770.