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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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USDCAD hits key resistance ahead of Canadian jobs data

Article By: ,  Financial Analyst
August 8, 2019 9:27 AM

Sentiment has remined somewhat positive with European equity indices firmer after Wall Street recovered from a sharp decline yesterday to close flat. A stronger-than-expected official fix for the yuan has also helped to reduce fears of a currency war, while concerns over the global economy eased slightly by Chinese exports data topping expectations overnight.

Consequently, the risk-sensitive Aussie dollar was the strongest among the major currencies, while the euro and pound were are among the weakest, as at 13:00 BST. With crude oil prices also firming up following a 5% plunge the day before, the Canadian dollar was also trying to stage a comeback ahead of the North American nation’s monthly jobs report tomorrow. Oil prices were supported by short-covering and slightly better sentiment towards risky assets across the board. In addition, the slump in prices have raised speculation that Saudi and her OPEC+ allies could take further action to support the oil market.

From a technical point of view, the USD/CAD’s corrective rebound could be about to end. That’s because rates are now testing the underside of the 200-day moving average, which had previously offered consistent support until the decisive breakdown in June. This moving average now has a negative slope, providing an objective view that the long-term trend may have turned bearish. With the 61.8% Fibonacci retracement and an old support level all converging in close proximity with the 200-day average, around the 1.3315-1.3355 area, I wouldn’t be surprised if the USD/CAD tops out here, before resuming lower…

Source: Trading View and City Index.

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