USD/CAD erases gains after US manufacturing data, back to 1.3150


  • US ISM Manufacturing offsets positive NFP report, weight on US Dollar. 
  • USD/CAD fails one more time at 1.3200, remains above 1.3140.

The USD/CAD pair jumped toward 1.3200 after the release of the US employment report but then reversed and retreat further following the ISM Manufacturing numbers. Recently dropped to 1.3150 and as of writing trades at 1.3160, flat for the day and up a hundred pips from the level, it had a week ago. 

Nonfarm Payrolls (NFP) rose by 128K in October, above the 89K expected, and September’s numbers were revised higher from 136K to 180K. The upbeat employment report was later offset by the Institute for Supply Management's (ISM) Manufacturing Purchasing Managers' Index (PMI) Index that came in at 48.3 in October, it represents an improvement from September, but it was below market consensus of 48.9. “The US manufacturing sector is in recession due to weak global growth, trade tensions, and a strong dollar. There is little reason to expect an imminent turnaround with more support from the Federal Reserve likely needed”, explained ING analysts. 

The Greenback reversed against majors after the Manufacturing report, falling to fresh lows. The DXY drop to test October lows below 97.20, while equity prices in Wall Street extended gains. 

Double top in USD/CAD? 

The pair again reversed course at the 1.3200 area, showing a potential double top formation. The neckline could be seen around 1.3140. So a consolidation below the mentioned level could target levels under 1.3100. Still, USD/CAD continues to move in the 1.3140/1.3200 range. A break above 1.3200 would signal more gains ahead. 

USD/CAD

Overview
Today last price 1.3153
Today Daily Change -0.0011
Today Daily Change % -0.08
Today daily open 1.3164
 
Trends
Daily SMA20 1.3174
Daily SMA50 1.3225
Daily SMA100 1.3204
Daily SMA200 1.3276
 
Levels
Previous Daily High 1.318
Previous Daily Low 1.3136
Previous Weekly High 1.3139
Previous Weekly Low 1.3052
Previous Monthly High 1.3349
Previous Monthly Low 1.3042
Daily Fibonacci 38.2% 1.3163
Daily Fibonacci 61.8% 1.3152
Daily Pivot Point S1 1.314
Daily Pivot Point S2 1.3116
Daily Pivot Point S3 1.3096
Daily Pivot Point R1 1.3184
Daily Pivot Point R2 1.3204
Daily Pivot Point R3 1.3228

 

 

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