Up every day this week
The price of the USDCAD is moving lower so far today. That is something new this week. The price has been higher on each successive day.
The price rally did find some overhead resistance at the end of the NY session in the 1.2909-147 area. That level corresponds with swing highs going back to the end of October/beginning of November.
The move lower today has the price moving toward a trend line at the 1.2870 level. The low has so far reached 1.2873. A move below is more bearish technically at least.
On a break, the November 21 high comes in at 1.28365. That will be the next target. Below that the 100 hour MA (blue overlay line) comes in at 1.2809 (and moving higher). From there, other MA line will be testing including the 200 hour MA at 1.2776, the 100 bar MA on the 4-hour at 1.2756 and the 200 bar MA on the 4-hour at 1.2730.
If the support holds and the price moves back higher that ceiling (yellow area on the chart above), will be looked at- and tested- yet again.
Helping the pair today is oil (up $0.18 today). OPEC agreed to production cuts in yesterday's trading (to the end of 2018).
Looking ahead, tomorrow, is a big day for the loonie as employment stats will be released. The currency will have the center stage for THIS month's employment day. The US will not release their employment statistics until next week. So it should be a big day - especially if it is surprise.
The expectations are for a 10K increase in employment (last month rose 35.3K). The unemployment rate is expected to dip to 6.2% from 6.3% last month.
The GDP for September and the 3Q will also be released. The September MoM is expected to show a 0.1% increase. The 3Q is expected to come in at 1.6%.
Oh Canada! Big day for the loonie.