USD/CAD Price Analysis: Bears take over and the pair loses the 20-day SMA

USD/CAD fell more than 0.50% on Monday, below the 20-day SMA towards the 1.3170 area.
Higher Oil prices support the CAD while the USD trades relatively flat.
All eyes are on US employment data from July.

Patricio Martín FXStreet

On Monday, the USD/CAD cut a four-day winning streak and fell below the 20-day Simple Moving Average (SMA) near the 1.3170 area. A flat USD, higher Oil prices and a better market mood are responsible for the CAD’s advance. All eyes are now on US employment data to be released this week.

Regarding the next set of employment data, markets foresee a decline in job creation while maintaining wages and an unchanged unemployment rate. Since Chair Powell stated last week that the decision to set the next interest rate will only be based on new data, the direction of the US labour market will be crucial for investors to model their expectations regarding the next Fed decisions. Powell also mentioned that the banks anticipate below-trend growth and "some" labour market softening to normalise inflation.

The JOLT's Job Opening report will be released on Tuesday, and the ADP Employment Change on Wednesday. The primary week's highlight, the Non-Farm Payrolls (NFP) report, will be released on Friday. New unemployment claims data will be released on Thursday.

On the CAD front, the week’s highlight will be the S&P Global Manufacturing PMI from July. In the meantime, CAD’s bulls are supported by higher Oil prices as the West Texas Intermediate (WTI) barrel rose to $81.13 and the Brent to $84.88.

USD/CAD Levels to watch

The USD/CAD has a bearish outlook for the short term, per the daily chart. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) hint at a strong bearish momentum. Furthermore, the pair is below the 20,100 and 200-day Simple Moving Averages (SMAs), implying that the bears retain control on a broader scale.

Support levels: 1.3150, 1.3120, 1.3100.
Resistance levels: 1.3215 (20-day SMA), 1.3250, 1.3270.

USD/CAD Daily chart

USD/CAD

Overview
Today last price	1.3166
Today Daily Change	-0.0088
Today Daily Change %	-0.66
Today daily open	1.3254

Trends
Daily SMA20	1.3219
Daily SMA50	1.3305
Daily SMA100	1.3423
Daily SMA200	1.3463

Levels
Previous Daily High	1.3255
Previous Daily Low	1.3201
Previous Weekly High	1.3255
Previous Weekly Low	1.3147
Previous Monthly High	1.3585
Previous Monthly Low	1.3117
Daily Fibonacci 38.2%	1.3234
Daily Fibonacci 61.8%	1.3222
Daily Pivot Point S1	1.3218
Daily Pivot Point S2	1.3183
Daily Pivot Point S3	1.3165
Daily Pivot Point R1	1.3272
Daily Pivot Point R2	1.329
Daily Pivot Point R3	1.3326

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.