Will Canadian Dollar’s Streak Continue?

Fundamental analysis of Forex market

USD/CAD is showing little movement on Monday. With the Canadian markets closed for the Thanksgiving holiday, With Canadian markets closed for a holiday on Monday, the pair is likely to stay very quiet today.

Canada job numbers sparkle

It was an excellent week for the Canadian dollar, which climbed 1.4%, its best weekly performance since June. The Canadian currency ended the week with strong gains, supported by strong employment numbers in September. The economy went on a tear, creating 378.2 thousand jobs, crushing the estimate of 150.0 thousand. The unemployment rate fell to 9.0%, its lowest rate since April. The forecast stood at 9.98%. Investors gave a thumbs-up to the strong numbers, saying the Canadian dollar higher on Friday. If investors like the direction that the economy is headed, then the Canadian dollar’s rally could continue this week.

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USD/CAD Technical

  • The support line of 1.3083 has weakened, as USD continues to move lower. Below, there is support at 1.3050
  • 1.3175 is the next resistance line, followed by resistance at 1.3234
  • The 50-day MA remains relevant, after the pair broke below this line late last week