USD/CAD Price Forecast: Trades subduedly near 1.3900 ahead of US-Canada employment data
The USD/CAD pair trades marginally lower at around 1.3900 during the European trading session on Friday. The Loonie pair is expected to trade with caution in the countdown to the United States (US)-Canada labor market data for May, which will be published at 12:30 GMT.
Investors will pay close attention to the US-Canada employment data to get fresh cues regarding the Federal Reserve (Fed) and the Bank of Canada’s monetary policy outlook.
The US Nonfarm Payrolls (NFP) report is expected to show that the economy created 85K fresh jobs, lower than 115K in April. The Unemployment Rate is seen remaining steady at 4.3%.
Meanwhile, Canada’s job report will likely show that employers hired 10K job-seekers after firing 17.7K workers in April. The Unemployment Rate is seen unchanged at 6.9%.
On the geopolitical front, conflicts between Israel and Lebanon remain continued despite US-brokered ceasefire, a scenario that could boost oil prices.
USD/CAD technical analysis
USD/CAD trades marginally lower at around 1.3900 at press time; however, the near-term trend is bullish as it trades above the 20-day Exponential Moving Average (EMA). which is at 1.3805
The RSI(14) hovers around 68, signaling strong but not yet extreme upside momentum that could sustain further gains while leaving room for a brief pause or consolidation phase.
On the topside, the immediate focus is on the March 31 high at 1.3967, which could act as key barrier for the US Dollar bulls. The pair could extend its advance towards 1.4000 if it manages to break above 1.3967. Looking down, the 20-day EMA will be the key support zone.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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