USD/CAD retreats below 1.3100, turns red for the week


  • USD/CAD reversed its direction after climbing to daily high above 1.3140.
  • US Dollar Index fails to hold above 93.00 following NFP-led rally.
  • Unemployment Rate in US declined to 8.2% in August.

The USD/CAD pair declined below 1.3100 in the early trading hours of the American session but shot higher after the US jobs report provided a boost to the greenback. After advancing to a daily high of 1.3141, however, the pair reversed its direction and was last seen losing 0.4% on a daily basis at 1.3075. For the week, USD/CAD remains on track to close with small losses.

DXY looks to end week below 93.00

The US Bureau of Labor Statistics reported on Friday that Nonfarm Payrolls in the US increased by 1.37 million in August and the Unemployment Rate fell sharply to 8.4% from 10.2% in July. The initial reaction to these data helped the greenback gather strength against its rivals and lifted the US Dollar Index (DXY) to a daily high of 93.24. The 10-year US Treasury bond yield also surged higher on the jobs report and was last down 9.2% on the day.

Nevertheless, end-of-week flows and profit-taking made it difficult for the DXY to preserve its bullish momentum and the index was last seen virtually unchanged on the day at 92.80. With the greenback losing its traction, the pair pulled away from its daily highs and returned below 1.3100 in the last hour.

On the other hand, the data from Canada revealed that the Unemployment Rate edged lower to 10.2% in August with the Net Change in Employment arriving at 245,800. Additionally, at 67.8 in August, the Ivey PMI showed that the economic activity in the private sector continued to expand at a robust pace.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3066
Today Daily Change -0.0062
Today Daily Change % -0.47
Today daily open 1.3128
 
Trends
Daily SMA20 1.3189
Daily SMA50 1.3371
Daily SMA100 1.3597
Daily SMA200 1.3524
 
Levels
Previous Daily High 1.3162
Previous Daily Low 1.3039
Previous Weekly High 1.324
Previous Weekly Low 1.3048
Previous Monthly High 1.3451
Previous Monthly Low 1.302
Daily Fibonacci 38.2% 1.3115
Daily Fibonacci 61.8% 1.3086
Daily Pivot Point S1 1.3057
Daily Pivot Point S2 1.2987
Daily Pivot Point S3 1.2935
Daily Pivot Point R1 1.318
Daily Pivot Point R2 1.3232
Daily Pivot Point R3 1.3302

 

 

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