USD/CAD Price Stalls Losses Ahead of Employment Data

• The median line could attract the USD/CAD pair.
• The Canadian data should have a big impact today.
• Taking out the median line activates a larger drop.

The USD/CAD price lost traction on Friday amid a weaker Greenback. The pair is trading at 1.3459 at the time of writing. The price corrected after marking a strong rally.

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The greenback depreciated in the short term even though the ISM Services PMI came in at 53.4 points above 52.0 points on Monday.

Yesterday, the US Unemployment Claims came in at 218K in the last week versus the 221K expected compared to 227K in the previous reporting period. However, the USD remains under downside pressure.

Today, the Canadian economic data could be decisive. The Employment Change is expected at 16.0K in January, versus 0.1K in December, while the Unemployment Rate could jump from 5.8% in December to 5.8% in January.

Poor economic data could help the USD/CAD pair to develop a new bullish momentum. On the contrary, positive data helps the CAD to drag the pair towards new lows.

USD/CAD Price Technical Analysis: Corrective Downside

From the technical point of view, the USD/CAD price turned to the downside after failing to reach the weekly R2 of 1.3549. It has dropped far below the R1 (1.3506), but the 1.3449 static support stopped the sell-off. Taking out this downside obstacle activates more declines.

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The median line (ml) and the pivot point 1.3432 represent potential downside targets. The price confirmed the descending pitchfork after testing and retesting the upper median line (uml). So, the median line could attract the price. A larger downward movement should be activated after a valid breakdown below this dynamic support. On the other hand, failing to reach it may announce a new leg higher.

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• Source: https://www.forexcrunch.com/blog/2024/02/09/usd-cad-price-stalls-losses-ahead-of-employment-data/