Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/CAD Analysis: Tight Price Realm Displayed as Crucial Data Awaits

Yesterday’s trading in the USD/CAD continued to display equilibrium in the currency pair for the time being, however important jobs data is coming from the U.S which is sure to stir up volatility.

  • The USD/CAD is actually trading within a lower price range than the one it occupied last week.
  • The current price of the currency pair is near the 1.35760 with support and resistance levels having displayed an ability to maintain a fairly tight range the past two days of trading.
  • Yes, Monday’s Forex was extremely light because of holiday conditions, but yesterday’s transactions remained within the 1.35600 to 1.35820 vicinities rather comfortably.

USD/CAD Analysis Today - 03/04: Tight Range (Graph)

However now is not the time for traders to relax in the USD/CAD, U.S jobs data is coming every day the remainder of this week. The Non-Farm Employment Change results on Friday are certain to shake the USD/CAD out of its known range and cause volatility. The U.S Fed is still talking about cutting interest rates ‘over time’, but the Fed refuses to give a concrete timetable. And the reason for the lack of a framework is because U.S economic data remains troubling.

Higher Range Still in Play for USD/CAD Speculators

The USD/CAD for all of its polite trading yesterday remains within the upper realms of its mid-term technical charts. And the currency pair is still lingering within sight of values that were traversed on the 13th of December, this when the U.S Fed changed its rhetoric to a more dovish tone and caused the USD/CAD to selloff. The downward momentum in the USD/CAD reflected the price action of the broad Forex market, but like the global Forex landscape the currency pair then started to reverse upwards ‘over time’.

The question some speculators may be starting to consider is if current resistance levels will prove durable and if they can be used to ignite selling positions. The next couple of days in the USD/CAD are likely to remain rather choppy. It is on Friday when the U.S gets set to release its Non-Farm Employment Change and Average Hourly Earnings that things are certain to change.

Top Forex Brokers

    Short-Term Wagers and Realistic Targets in the USD/CAD

    While the upside has seemingly run into rather promising resistance the past couple of days, the USD/CAD did trade near the 1.36110 level on Thursday of last week. The potential of the higher ground being seen again in the near-term exist. Traders need to use solid risk management to make sure their wagers to not lose control and become expensive losses.

    • If the U.S jobs data comes in weaker than expected on Friday it might ignite some selling of the USD/CAD, but betting on this result is dangerous and risk management is needed.
    • If a trader is anticipating that financial institutions may believe the USD/CAD is overbought they might be in good company, but that doesn’t mean they are correct.

    Canadian Dollar Short Term Outlook:

    Current Resistance: 1.35790

    Current Support: 1.35680

    High Target: 1.35850

    Low Target: 1.35590

    Ready to trade our Forex daily analysis and predictions? Here are the best Canadian online brokers to start trading with. 

    Robert Petrucci
    About Robert Petrucci
    Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

    Most Visited Forex Broker Reviews