- USD/CAD trades lacklustre around 1.3580 as the focus shifts to US JOLTS Job Openings data.
- Traders pare Fed rate cut bets for June on strong US Manufacturing PMI.
- USD/CAD is on the verge of breaking out of the ascending triangle pattern.
The USD/CAD pair trades sideways around 1.3580 in Tuesday’s European session. The Loonie asset struggles to extend recovery above 1.3580 as investors look for fresh United States labor data to get cues about when the Federal Reserve (Fed) will start reducing interest rates.
This week, investors will focus on the US Nonfarm Payrolls (NFP) report for March, which will be published on Friday. In today’s session, investors will focus on the JOLTS Job Openings for February. US employers are anticipated to have posted fresh 8.74 million job openings, lower than 8.863 million in January.
Meanwhile, the market sentiment is risk-off as strong United States Manufacturing PMI for March forced traders to unwind their bets for the Fed to begin the rate-cut cycle from June. The US Institute of Supply Management (ISM) reported the Manufacturing PMI above the 50.0 threshold at 50.3 after shrinking for 16 months in a row.
S&P 500 futures have posted some losses in the European session. The US Dollar Index (DXY) trades close to four-month high slightly above 105.00.
The next move in the Canadian Dollar will be guided by the labor market data for March, which will be published on Friday. Canadian employers are expected to have recruited 25K job seekers.
USD/CAD is inch from breaking out of the Ascending Triangle pattern formed on a daily time. A breakout of a Triangle pattern could happen in either direction. The chart pattern exhibits a sharp volatility contraction. The upward-sloping border of the aforementioned pattern is placed from December 27 low at 1.3177 while horizontal resistance is plotted from December 7 high at 1.3620
The 20-day Exponential Moving Average (EMA) near 1.3520 remains sticky to spot prices, indicating a sideways trend.
The 14-period Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, indicating indecisiveness among market participants.
The Loonie asset would observe a fresh upside if it breaks above December 7 high at 1.3620. This will drive the asset towards May 26 high at 1.3655, followed by the round-level resistance of 1.3700.
On the flip side, a downside move below February 22 low at 1.3441 would expose the asset to February 9 low at 1.3413. A breakdown below the latter would extend downside towards January 15 low at 1.3382.
USD/CAD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD struggles near multi-month low; awaits US CPI before the next leg down
AUD/USD enters a bearish consolidation phase near a multi-month low touched on Tuesday as traders await the release of the US CPI report, due later today, for cues about the Fed's rate-cut path and before placing fresh directional bets.
USD/JPY eases from two-week low; downside seems protected ahead of US CPI
USD/JPY stalls a two-day uptrend near a technically significant 200-day SMA and trades with a mild negative bias just below a nearly two-week low touched Tuesday. A stronger Japan PPI report keeps the door open for a December BoJ rate hike and supports the JPY.
Gold on its way to challenge record highs
The upside momentum in Gold prices gathers extra steam on Tuesday, sending the metal to new two-week tops in levels just shy of the key $2,700 mark per troy ounce.
Could Google's supercomputer crack Bitcoin? Crypto community maintains positive outlook
Bitcoin faced mixed sentiments on Tuesday after crypto community members spoke on the potential of Google's new quantum chip Willow's ability to crack blockchain networks and render the security of public key cryptography useless.
How the US-China trade dispute is redefining global trade
Since Donald Trump took office in 2017, trade flows and market shares have changed substantially. We think that shift is set to continue under looming tariffs and a new protectionist environment.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.