USD/CAD Daily Price Forecast – Range Bound Action To Continue Ahead of US NFP Update

The pair trades range bound as USD seems to have lost momentum from earlier in the day and investors await US macro data update before placing major bets.
Colin First

The USDCAD pair continues range-bound price action as trading session approaches week’s closing. US Dollar rebound from recent losses and dollar bulls recovered from the impact of dovish Fed comments in the broad market. Headlines hit the market in Pacific-Asian market hours that trade deal between U.S. and China has been delayed, however, it also increased investor optimism of positive outcome in the broad market. Headlines and comments from US President Donald Trump helped confirm that key issues which were left unresolved so far had been addressed and the same proceeded in a positive direction despite some level of disagreement between the two people. However President Trump said the deadline won’t be extended and if there is no deal by then, U.S will impose sanctions on Chinese goods. This boosted U.S. Dollar demand in the broad market.

US NFP To Provide Direction Bias

Further, a decline in crude oil price action also added support to USD bulls as Canadian Loonie is a commodity-linked currency and suffers loss whenever there is a decline in crude oil price. As of writing this article, USDCAD pair is trading at 1.3107 down by 0.10% on the day. Moving forward Canadian Loonie is likely to regain some ground as the trading session comes to close owing to bearish market signals. Investors are looking at macro data updates for short term profit opportunities as trading session closes for the day. All major events and macro data updates for the week are nearly done with aside from today’s U.S. NFP update.

There are no major updates in Canadian economic calendar for the day leaving price action to be determined by US Dollar price dynamics and crude oil price action in the broad market. On the U.S. calendar, the market will see the release of NFP data, Unemployment rate, and ISM Manufacturing PMI update. The forecast for U.S. macro data is highly dovish which suggests Canadian Loonie could gain upper hand if the data outcome is a disappointment. The pair now needs to breach resistance at 1.3164 for US Greenback to gain upper hand while a break past 1.3100 is needed for Loonie to regain the upper hand. While the price remains trapped in between said price levels, the pair will continue to see range-bound price action.

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