USD/CAD – all stars lined up at this resistance point

USD/CAD has been recovering from its recent downtrend, but today the bulls hit a brick wall. The recent change in US dollar sentiment and weaker oil prices pushed the pair back up from a long-term low of 1.2994. It’s been the lowest level since late January.

The US and Canadian employment figures have seen a decrease compared to July

The latest US and Canadian employment figures will be released tomorrow. 

The US will provide non-farm payrolls and unemployment rate reports. The country is expected to have regained another 1.4 million jobs in the previous month. The unemployment rate is forecast to decline by 9.8% compared to the previous rate at 10.25%. Still, average hourly earnings are likely to remain flat.

Canada is likely to report a jump of 275,000 jobs in August, which is slower than in July. Figures of both countries are down from last month, but the Canadian rate is forecast to decline significantly. In addition to the employment figures, the Canadian Ivey PMI figure will also be released, which could have some significant implications for the Canadian dollar.

USD/CAD closest support at 1.3050

Tomorrow’s data is a binary event. A lot will depend on it. The USD/CAD trend is firmly in a downtrend, and ahead of the launch. The resistance level could hold and cause the price to turn down. The better than expected US employment reports may offer additional support to the American dollar. However, some traders will favor seeing more data.

For USD to CAD, the closest support is located at 1.3050. It may see some support near 1.2080 as well. If the pair moved below the support placed at 1.3050, it would be examining the next support level at the recent lows of 1.3000.