USD/CAD hits fresh monthly highs above 1.2640

Canadian dollar falls versus its main rivals on Thursday.
USD/CAD extends rally, firm above 1.2600, now looking at 1.2655.
Risk aversion boosts the greenback versus commodity and emerging market currencies.

Matías Salord FXStreet

The USD/CAD accelerated to the upside on the back of a stronger US dollar and climbed to 1.2645, reaching the highest level since October 6. The pair is rising for the third consecutive day.

Positive economic data and stocks in red

In Canada, the ADP report showed an increase in jobs of 65K in October, the best month since April. Also, employment insurance beneficiaries fell by 21.7% in September.

In the US, economic numbers came in better-than-expected. Jobless claims dropped to a fresh pandemic low, and the Philly Fed jumped from 23.8 to 39, surpassing the 24 of market consensus.

The figures boosted the greenback, particular against commodity and emerging market currencies. The decline in equity prices is also boosting the dollar. In Wall Street, the Dow Jones is falling by 0.70% and the Nasdaq by 0.32%

After the number, USD/CAD rose back above 1.2600 and during the American session continued with the move. A modest increase in crude oil prices is not helping the loonie which among G10 currencies is the worst performer.

Technical indicators favor more upside for USD/CAD, with the next resistence level seen at 1.2655, followed by 1.2695, and key moving averages now turning north. A slide under 1.2580, meanwhile, would alleviate the bullish pressure.

Technical levels

USD/CAD

Overview
Today last price	1.2618
Today Daily Change	0.0006
Today Daily Change %	0.05
Today daily open	1.2612

Trends
Daily SMA20	1.2445
Daily SMA50	1.2535
Daily SMA100	1.2549
Daily SMA200	1.2472

Levels
Previous Daily High	1.2623
Previous Daily Low	1.254
Previous Weekly High	1.2605
Previous Weekly Low	1.2387
Previous Monthly High	1.2739
Previous Monthly Low	1.2288
Daily Fibonacci 38.2%	1.2591
Daily Fibonacci 61.8%	1.2572
Daily Pivot Point S1	1.2561
Daily Pivot Point S2	1.2509
Daily Pivot Point S3	1.2478
Daily Pivot Point R1	1.2643
Daily Pivot Point R2	1.2674
Daily Pivot Point R3	1.2726

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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