USD/CAD Price Analysis: Rangebound near 1.3450 ahead of Canadian Employment data

USD/CAD trades sideways near 1.3450 ahead of Canada’s labor market data.
Deepening Middle East tensions continue to provide support to the US Dollar.
A lackluster action in the Loonie asset indicates indecisiveness among market participants.

Sagar Dua FXStreet

The USD/CAD pair oscillates in a tight range around 1.3450 as investors await the Canadian Employment data for January, which will be published at 13:30 GMT.

Investors anticipate Canadian employers recruiting 15K new workers against flat demand in December. The Unemployment Rate is expected to increase slightly to 5.9% vs. the prior reading of 5.8%. The Bank of Canada (BoC) may focus on keeping interest rates at their current level longer if the labor market conditions remain upbeat.

Meanwhile, the US Dollar Index (DXY) attempts to recover as market mood remains cautious due to deepening Middle East tensions. Israel denies the ceasefire proposal from Hamas having unacceptable terms. Also, investors await January's United States inflation data, which will be published on Tuesday. Investors see price pressures expanding at a steady pace.

USD/CAD turns sideways in a range of 1.3450-1.3500 after correction from an 11-week high of 1.3544 on an hourly scale. The Loonie asset struggles for a direction ahead of crucial labor market data. The 50-period Exponential Moving Average (EMA) around 1.3460 has overlapped the Loonie asset, indicating a sharp contraction in volatility.

The 14-period Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, indicating a sideways trend.

The fresh upside would emerge if the Loonie asset climbed above the January 17 high at 1.3542, which will drive the asset towards the round-level resistance of 1.3600, followed by the November 30 high at 1.3627.

On the flip side, a sell-off could appear if the Loonie asset drops below January 31 low at 1.3359. This will expose the asset to January 4 low at 1.3318 and January 5 low at 1.3288.

USD/CAD hourly chart

USD/CAD

Overview
Today last price	1.346
Today Daily Change	0.0002
Today Daily Change %	0.01
Today daily open	1.3458

Trends
Daily SMA20	1.3461
Daily SMA50	1.3421
Daily SMA100	1.3553
Daily SMA200	1.3476

Levels
Previous Daily High	1.3493
Previous Daily Low	1.3448
Previous Weekly High	1.3476
Previous Weekly Low	1.3359
Previous Monthly High	1.3542
Previous Monthly Low	1.3229
Daily Fibonacci 38.2%	1.3465
Daily Fibonacci 61.8%	1.3476
Daily Pivot Point S1	1.3439
Daily Pivot Point S2	1.3421
Daily Pivot Point S3	1.3394
Daily Pivot Point R1	1.3485
Daily Pivot Point R2	1.3512
Daily Pivot Point R3	1.353

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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