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USD/CAD Price Prediction – Canadian Dollar Moves Higher Against U.S. Dollar

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·2-min read
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Key Insights

  • U.S. Dollar is losing some ground against Canadian dollar. 

  • This week, traders will focus on ADP Employment Change and Non Farm Payrolls reports from the U.S. 

  • In case USD/CAD manages to settle below 1.2875, it will head towards the next support level at 1.2830.

U.S. Dollar Is Under Pressure

USD/CAD declined below the 20 EMA at 1.2875, while the U.S. dollar lost some ground against a broad basket of currencies.

Trading is calm today due to the holiday in the U.S. The U.S. Dollar Index has recently failed to get to the test of the yearly highs and declined towards the 105 level. In case the U.S. Dollar Index manages to settle above this level, it will head towards the support at 104.65, which will be bearish for USD/CAD.

This week, traders will be focused on the employment data from the U.S. On Thursday, the U.S. will release ADP Employment Change report, which is expected to show that private businesses added 200,000 jobs in June.

On Friday, traders will pay attention to the Non Farm Payrolls report, which is projected to indicate that the U.S. economy added 270,000 jobs in June. Unemployment Rate is expected to remain unchanged at 3.6%.

Traders should note that ADP Employment Change and Non Farm Payrolls report sometimes show different pictures of the labor market. Typically, the Non Farm Payrolls report will have a bigger impact on currency dynamics.

USD/CAD Tests Support At The 20 EMA

USD/CAD continues its attempts to settle below the 20 EMA at 1.2875. If USD/CAD manages to settle below level, it will move towards the next support level, which is located near the 50 EMA at 1.2830.

A move below the 50 EMA will push USD/CAD towards the support at 1.2800. In case USD/CAD declines below this level, it will head towards the next support level at 1.2780.

On the upside, a move above the 20 EMA will open the way to the test of the resistance at 1.2900. In case USD/CAD gets above this level, it will head towards the next resistance level at 1.2940. A successful test of this level will push USD/CAD towards the resistance at 1.2980.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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