FX markets continued moving quietly during the European morning, with the dollar trading midday in a ±0.2% range against the other G10 currencies. It seems that investors are keeping their attention on the US employment data for September, coming out later in the day. The number needs to beat estimations in order to reverse the market perception on the shutdown’s impact. The greenback recorded its biggest gains against the Norwegian Krone, driving the USD/NOK pair above Friday’s highs, while it was relatively down against its Canadian counterpart ahead of Canada’s retail sales release. The GBP/USD also remained unchanged, ignoring the data on public net borrowing for September. The figure showed a narrowed deficit of GBP 9.4bn, beating estimations of GBP 10bn. Both the JPY and the CHF stabilized near their morning levels, confirming that markets have only eyes for the forthcoming US employment data.
The USD/CAD moved lower during the European morning, after finding resistance at the 1.0308 (R1) barrier. During the last hours’ activity, the pair broke below a possible rising wedge continuation pattern and at the time of writing is trading slightly above the 1.0289 (S1) floor. A decisive dip below that level, would trigger bearish extensions towards the next support areas. Short term studies support the notion since the MACD crossed below its trigger line, while the RSI violated its blue upward support line. The overall trend of the pair remains a downtrend since the rate is trading below both moving averages and the blue downtrend line.
Support: 1.0289 (S1), 1.0275 (S2), 1.0254 (S3)
Resistance: 1.0308 (R1), 1.0330 (R2), 1.0357 (R3)
USD/CAD Hour Chart" title="USD/CAD Hour Chart" width="1731" height="815" src="https://d1-invdn-com.akamaized.net/content/picc916162d193584c47598a69aed3846fa.png">
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