USD/CAD hits fresh daily highs near 1.3600 as Dollar rallies

US Dollar rises sharply after data, DXY hits highest in almost a month.
USD/CAD rebounds from 1.3475 toward 1.3600.
US and Canadian employment reports to be released on Friday.

Matías Salord FXStreet

The USD/CAD is up on Thursday by more than a hundred pips booted by a stronger US Dollar. The pair peaked during the American session at 1.3587. It remains near the high with a firm bullish tone.

Despite falling versus the Dollar, the Loonie is outperforming on Thursday. AUD/CAD is at two-day lows while NZD/CAD dropped to the lowest since late November weakened by a deterioration in market sentiment. The Dow Jones is falling by 1.20% and the Nasdaq tumbles by 1.28%. Crude oil prices are up but off highs.

The USD/CAD could face resistance around the 1.3610/15 area and then 1.3650. The key level n the upside is seen at 1.3700. A daily close above would point to further strength. On the downside, the pair has rebounded from the relevant support of 1.3470/80; a daily close below should clear the way toward 1.3400.

Dollar up on US data

Data released on Thursday showed an increase in private payrolls by 235K in December above the 150K of market consensus, according to ADP. The weekly jobless claims report showed a decline in initial claims to the 204K, the lowest since September. The December reading of the S&P Global Services PMI was revised to the upside from 44.4 to 44.7.

The US Dollar strengthened after the reports. The DXT surged to the highest level since December 8 above 105.00. US Treasury bond yields also climbed, reaching multi-day highs across the curve. The Nonfarm Payroll report is due on Friday. Market consensus is for an increase by 200K. The numbers could trigger more volatility.

In Canada employment report is also due on Friday. “We look for employment to rise by 8k in December as the Canadian labour market starts to cool. This should push the unemployment rate back to 5.2%, although we expect full-time employment to drive the headline print amid scarce labour supply. We also look for wages to push higher to 5.5% y/y with help from muted base effects, while hours worked should see a modest increase”, explained analysts at TD Securities.

Technical levels

USD/CAD

Overview
Today last price	1.3573
Today Daily Change	0.0091
Today Daily Change %	0.67
Today daily open	1.3482

Trends
Daily SMA20	1.3598
Daily SMA50	1.3525
Daily SMA100	1.3465
Daily SMA200	1.3138

Levels
Previous Daily High	1.368
Previous Daily Low	1.3476
Previous Weekly High	1.3612
Previous Weekly Low	1.3484
Previous Monthly High	1.3705
Previous Monthly Low	1.3385
Daily Fibonacci 38.2%	1.3554
Daily Fibonacci 61.8%	1.3603
Daily Pivot Point S1	1.3412
Daily Pivot Point S2	1.3342
Daily Pivot Point S3	1.3208
Daily Pivot Point R1	1.3616
Daily Pivot Point R2	1.375
Daily Pivot Point R3	1.382

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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