USDCAD long term rebound at risk

The pair breaks below a key moving average with momentum.

Charts (6)

The US Dollar was bearish against all of its major pairs on Thursday. On the US economic data front, Initial Jobless Claims declined to 840K for the week ending October 3rd (820K expected), from a revised 849K in the week before. Finally, Continuing Claims dropped to 10,976K for the week ending September 26th (11,400K expected), from a revised 11,979K in the prior week.  

On Friday, Wholesale Inventories for the August final reading are expected to rise 0.5% on month, in line with the August preliminary reading. 

The Euro was bearish against all of its major pairs. In Europe, The German Federal Statistical Office has posted August trade balance at 12.8 billion euros surplus (vs 16 billion euros surplus expected). The Bank of France has released Industry Sentiment Indicator for September at 101 (vs 105 expected).

The Australian dollar was bullish against most of its major pairs with the exception of the CAD. 

WTI Crude Oil jumped $1.33 (+3.33%) to $41.28.

The USDCAD posted the largest moves on the day declining 58 pips to 1.3198 in Thursday's trading. The rebound that started in September is at risk after a rising broadening wedge took shape. The pair broke back below the 20 and 50 day moving averages. Momentum looks to favor the downside towards 1.30 support. A break above 1.335 resistance would be a bullish signal for an attempt to break 1.342 resistance on the rebound. 



Source: GAIN Capital, TradingView

Happy Trading


More from Forex

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.