USDCAD Surging Rebound post-Employment reports

Video Analysis

An aggressive rally through the US and Canadian Employment reports on Friday (5th June) has seen both a short-term bullish shift and also threat of an intermediate-term bullish switch into mid-August (see above 1.3296).

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A prod below the 1.3000 support low from late July on Thursday (to 1.2995), but then a rebound and aggressive rally Friday (after the US and Canadian Employment reports).

The push through the 1.3141/48 resistance area to probe 1.3192 has seen a shift to a positive theme for Monday.

For Monday:

  • We see an upside bias for 1.3200; break here aims for 1.3252 and maybe key 1.3296.
  • But below 1.3120 opens risk down to 1.3000/1.2995.

Furthermore, the latter July surge above 1.3218 produced an intermediate-term shift from bearish to neutral, with August risk still skewed for a push above 1.3296 to signal an intermediate-term shift from neutral to bullish.

Short/ Intermediate-term Range Parameters: We see the range defined by 1.2651 and 1.3296.

Range Breakout Challenge

  • Upside:Above 1.3296 aims higher for 1.3405 and 1.3500.
  • Downside:Below 1.2651 sees risk lower for 1.2457 and 1.2304.

Daily USDCAD Chart
USDCAD

4 Hour USDCAD Chart
4 Hour USDCAD

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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