Forex Technical Update
4/5 CAN Data:
The 4/5 Canadian releases were very positive beating expectations.
Nick Nasad, Chief Market Analyst prepared us for this: Preview: Jobs Data can Extend CAD Strength (4/4)
Building Permits (February): 7.5% forecast: 2.6%, previous -11.4% revised from -12.3%, but more importantly,
Employment Change (March): 82.3K, forecast: 11.3K, previous: -2.8K (best data in 8 months),
Unemployment Rate (March): 7.2%, forecast: 7.5%, previous: 7.4%
The Loonie (Canadian Dollar) strengthened sharply across the board:
USD/CAD: holding below parity, USD/CAD accelerated to the downside after the jobs data.
It has its eye at least on the 0.9870-0.9890 support zone.
Below 0.9870, the market opens up 0.9780, and then 0.9720.
The 2011 Low is around 0.94 with a pivot near 0.9450 as well.
The EUR/CAD has already been sliding since the end of March.
It is accelerating to the downside despite oversold conditions.
There is a short-term support at 1.2870.
If that breaks the market sees the next support pivot at 1.2770.
GBP/CAD also fell sharply from 1.5850 area to 1.57 area in the hour following the release.
1.5625-1.5650 can be seen as a pivot zone and short-term target/support.
The pair is really in a range between a large 1.5270 and 1.6380, trading in the middle but heading south.
AUD/CAD has been declining, but was in a bullish correction from 1.0180 to 1.0273. The CAN release caused it to slide down to 1.02 (78.6% retracement of this corrective rally). Below the current low of 1.0180, the next support pivots are 1.01-1.0105, and the 0.9930-0.9950 area.
If Friday's US NFP also show positive jobs data in the US, the CAD should continue to gain across the board, but maybe not so much against the USD.
We will go into a more detailed discussion of the CAD as well as other currency, equities, bonds, and commodities markets all week long in our Market Intelligence Briefings. Subscribe Today!
Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes and IBTrade will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.