USD/CAD Price Analysis: Remains on backfoot ahead of US/Canada Employment data

USD/CAD struggles for a firm footing amid soft US Dollar.
Investors await the US/Canada labor market data for further guidance.
USD/CAD extended losses after slipping below the horizontal support plotted from 1.3786.

Sagar Dua FXStreet

The USD/CAD pair looks for intermediate support near 1.3700 after a sharp sell-off. The Loonie asset remains on the backfoot as investors dumped the US Dollar on expectations that the Federal Reserve (Fed) is concluding its rate-tightening campaign.

The US Dollar Index (DXY) struggles to sustain above the crucial support of 106.00 ahead of the United States Nonfarm Payrolls (NFP) data for October. As per the consensus, US employers hired 180K job seekers against 336K payrolls in September, which was surprisingly upbeat. The Unemployment Rate is seen steady at 3.8%.

Investors would also watch the Canadian employment data for October. Economists expect that the Canadian labor force grew by 22.5K payrolls against 63.8K job additions in September. The jobless rate is seen rising to 5.6% against 5.5% reading.

USD/CAD extended losses after slipping below the horizontal support plotted from October 5 high at 1.3786 on a two-hour timeframe. The Loonie asset has also stabilized below the upward-sloping trendline placed from September 29 low at 1.3417. The major struggles to rebound above the 200-period Exponential Moving Average (EMA), which trades around 1.3755.

A range shift move by the Relative Strength Index (RSI) (14) into the 20.00-40.00 range indicates a bearish reversal.

A decisive break above October 27 high at 1.3880 would expose the round-level resistance at 1.3900, followed by 13 October 2022 high at 1.3978.

In an alternate scenario, a breakdown below October 24 low around 1.3660 would drag the asset to the round-level support of 1.3600. A further breakdown could expose the asset to October 7 low at 1.3570.

USD/CAD two-hour chart

USD/CAD

Overview
Today last price	1.3745
Today Daily Change	0.0005
Today Daily Change %	0.04
Today daily open	1.374

Trends
Daily SMA20	1.3721
Daily SMA50	1.3629
Daily SMA100	1.3465
Daily SMA200	1.3489

Levels
Previous Daily High	1.386
Previous Daily Low	1.3736
Previous Weekly High	1.3881
Previous Weekly Low	1.3661
Previous Monthly High	1.3892
Previous Monthly Low	1.3562
Daily Fibonacci 38.2%	1.3783
Daily Fibonacci 61.8%	1.3812
Daily Pivot Point S1	1.3697
Daily Pivot Point S2	1.3654
Daily Pivot Point S3	1.3573
Daily Pivot Point R1	1.3821
Daily Pivot Point R2	1.3902
Daily Pivot Point R3	1.3945

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.

AUD/USD pulls back from monthly high but holds above 0.7000

AUD/USD retreats from the monthly high set earlier this Thursday, sliding back to 0.7000 during the Asian session as a further escalation of tensions in the Middle East undermines the risk-sensitive Aussie. However, recent hawkish comments from RBA officials could support the Australian Dollar. Furthermore, the prevailing US Dollar selling bias, despite Fed hike bets and geopolitical uncertainties, could limit losses for the pair.

USD/JPY declines to a one-week low; eyes trading range support near 157.50 on weaker USD

USD/JPY drops to a one-week low during Thursday’s Asian session, with bears now awaiting a break below multi-week range support near mid-157.00s before placing fresh bets amid a broadly weaker US Dollar. Despite bets for a December Fed rate hike and Middle East jitters, the recent decline in US bond yields keeps USD depressed near a three-week low. Moreover, hawkish BoJ expectations and intervention risks underpin the Japanese Yen, further weighing on the currency pair.

Gold bounces off monthly low as USD selling remains unabated amid falling bond yields

Gold pares heavy intraday losses to the monthly trough, though it retains an intraday bearish tone below $4,100 during Thursday’s early European session. The US Dollar selling bias remains unabated as Federal Reserve officials recently signaled there is no urgency to raise interest rates at the upcoming October 27–28 meeting. Furthermore, US bond yields extend their retracement slide from multi-year highs, keeping USD bulls on the back foot and offering some support to the precious metal.

Dogecoin stays weak despite whales and new deal

Dogecoin price remains under pressure, trading below $0.081 despite a modest rebound earlier this week. Santiment data shows signs of accumulation, and Wednesday’s announcement of a Dogecoin Labs partnership with the Dogecoin Foundation adds a mildly bullish sentiment. Meanwhile, mixed derivatives metrics and weakening momentum indicators continue to limit the meme coin recovery.

3 Gold forecasts at $4,100: A bullish Arc rejection, a bearish Fed setup and a festival tiebreaker

Gold (XAU/USD) is trading near $4,100, and the three latest analyses cannot agree on what the level means: one sees the bounce from support as confirmation of a potential push toward $4,227, another argues every rally is vulnerable while price sits under its 20-day EMA, and the third points to India's Diwali buying season as the physical test about to meet the market.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.