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FxWirePro: USD/CAD Outlook

Major resistance- 1.32335 (61.8% fib)

USDCAD has shown a recovery of more than 80 pips after better than expected US jobs data. US economy has added 201000 jobs in the month of Aug compared to forecast of 191k and unemployment rate came at 3.8%. US average hourly earnings came at 0.4% m/m and at an annual rate of 2.9% fastest pace since Jun 2009. The pair recovered till 1.31931 and currently trading around 1.31925.Trade war between US and Canada also supporting US dollar.

On the higher side, any break above 1.3235 will take the pair to next level till 1.3300/1.3385. Long term trend reversal only above 1.3385.

The near term major support is around 1.3100 and any violation below targets 1.3030 (100- day MA) and any close below targets 1.2965/1.2900.

It is good to buy on dips around 1.3135-38 with SL around 1.3075 for the TP of 1.3230/1.3300.

 

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