USD/CAD drifts lower, approaching support at 1.3550 ahead of the US NFP

Guillermo Alcala FXStreet

The US Dollar pulls back ahead of the NFP report
The uptick in Oil prices is providing support to the CAD.
Longer term, the pair is in a corrective move after November’s sell-off.

The US Dollar is losing ground on Friday, calling an end to a 4-day rally as the loonie trims losses, favoured by higher Oil prices ahead of the US Nonfarm payrolls report.

The Dollar recovery lost steam on Thursday after the increase on last week’s Jobless Claims confirmed the softer US labour market anticipated by the JOLTs Job Openings and the ADP report and heightened speculation of Fed rate cuts in 2024.

In Canada, The BoC left rates on hold on Wednesday, keeping the doors open to further tightening although the comments about the cooling inflationary pressures have acted as a headwind for the CAD.

US Nonfarm Payrolls are likely to boost USD volatility

The main focus today is the US Nonfarm Payrolls, which are expected to show a moderate increase in employment and hourly wages. Investors will look at these figures with a special interest for confirmation that the Fed’s rate hikes have come to an end, which might boost volatility on US Dollar crosses.

The technical picture shows the pair is correcting higher, after a 3% sell-off in November. The next resistances are likely to be at the 4h 100SMA, at 1.3600, the November 30 high, 1.3622 and 1.3700.

Supports are 1.3520 and the December 4 low at 1.3475.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3582
Today Daily Change	-0.0014
Today Daily Change %	-0.10
Today daily open	1.3596

Trends
Daily SMA20	1.3654
Daily SMA50	1.3692
Daily SMA100	1.3579
Daily SMA200	1.3517

Levels
Previous Daily High	1.362
Previous Daily Low	1.3584
Previous Weekly High	1.3661
Previous Weekly Low	1.3487
Previous Monthly High	1.3899
Previous Monthly Low	1.3541
Daily Fibonacci 38.2%	1.3606
Daily Fibonacci 61.8%	1.3598
Daily Pivot Point S1	1.358
Daily Pivot Point S2	1.3564
Daily Pivot Point S3	1.3545
Daily Pivot Point R1	1.3616
Daily Pivot Point R2	1.3636
Daily Pivot Point R3	1.3652

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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