USD/CAD Faces Pivotal Moment with Dual Job Reports

By Tomasz Wisniewski|

Published: July 05 2024, 09:19 GMT+0

USD/CAD Faces Pivotal Moment with Dual Job Reports

We are at a critical juncture with the American dollar to Canadian dollar (USD/CAD) as we await key job data from both the U.S. and Canada today. This pair will be highly influenced by these macroeconomic numbers. The price is currently sitting on a crucial horizontal support at the 1.36 level, marked in orange. This level has served as significant resistance and support since February, making today’s price action vital. Despite previous bounces from this support, the current selling pressure suggests a potential breakdown.

Looking closely at the technicals, we see that the green lines indicate the supports and resistances of a symmetric triangle. Both supports have already been breached, which is a bearish signal. However, for a confirmed sell signal, we need a daily close below the critical 1.36 support. Today’s job data will likely provide the decisive move. If the price closes below the orange support, it will confirm a long-term bearish outlook. Conversely, holding above it could signal a buying opportunity.

In the next few hours, we will witness a significant movement in USD/CAD as the market reacts to the employment data. Traders should be prepared for increased volatility and ready to adapt their strategies based on the breakout direction. The key is to watch the 1.36 level closely for a confirmed move.