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The Canadian Dollar (CAD) slipped further on Friday, driven lower by a broad-market extension of recent Greenback bidding that sent the US Dollar higher across the board after US Nonfarm Payrolls (NFP) figures widely outran expectations.Canada’s Ivey Purchasing Manager’s Index (PMI) recovered in September, but the Canadian datapoint was swept aside by investors fully focused on US payrolls data. US NFP net job additions came in well above expectations in September, with upside revisions to several month’s of jobs figures. The rapid shift in the market’s outlook of the US labor market has widely shifted rate market bets of November’s Federal Reserve (Fed) rate cut.
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Canadian Dollar price forecast
The USD/CAD pair has been grinding higher over the past few sessions, with the pair finding itself at a critical juncture near the 50-day (1.3584) and 200-day (1.3602) Exponential Moving Averages (EMA). After a sustained downtrend from mid-August to early September, the pair has shown signs of stabilization, rebounding off the 1.3450 level.This recent price action signals that USD/CAD could be testing the upper boundaries of its consolidation range, with potential resistance near the 1.3600 handle. While the pair remains below both the 50-day and 200-day EMAs, the proximity of these moving averages suggests a zone of significant technical resistance. A break above these levels could open the door for further gains, targeting the 1.3700 level.On the downside, the pair appears to have found support around 1.3450, a key level that has acted as a floor in recent trading. A failure to hold above this level may lead to renewed selling pressure, potentially driving the pair back to the 1.3350 region.
USD/CAD daily chart
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