Will Canadian dollar’s streak continue?

USD/CAD is showing little movement on Monday. With Canadian markets closed for a holiday on Monday, the pair is likely to stay very quiet today.

Canada job numbers sparkle

It was an excellent week for the Canadian dollar, which climbed 1.4%, its best weekly performance since June. The Canadian currency ended the week with strong gains, supported by strong employment numbers in September. The economy went on a tear, creating 378.2 thousand jobs, crushing the estimate of 150.0 thousand. The unemployment rate fell to 9.0%, its lowest rate since April. The forecast stood at 9.8%. Investors gave a thumbs-up to the strong numbers, saying the Canadian dollar higher on Friday. If investors like the direction that the economy is headed, then the Canadian dollar’s rally could continue this week.

.

USD/CAD Technical

  • The support line of 1.3083 has weakened, as USD continues to move lower. Below, there is support at 1.3050
  • 1.3175 is the next resistance line, followed by resistance at 1.3234
  • The 50-day MA remains relevant, after the pair broke below this line late last week

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.
Kenny Fisher

Latest posts by Kenny Fisher (see all)