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USD/CAD: waiting for new drivers – Analytics & Forecasts – 5 January 2023

Byadmin

Jan 5, 2023
USD/CAD: waiting for new drivers

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Being above the key support levels 1.3235, 1.2970, USD/CAD remains in the zone of a long-term bull market. As we noted in today’s Fundamental Analysis, tomorrow’s release of data from the US and Canadian labor markets may be the main driver of the pair for several days ahead: tomorrow at 13:30 (GMT), simultaneously with the publication of the monthly report of the US Department of Labor, Statistics Canada will publish a monthly report on the national labor market with data for December. As for the Fed, data on GDP, inflation and the labor market are decisive for the Bank of Canada when planning the parameters of monetary policy. Unemployment is expected to rise moderately (+0.1%) in Canada, to 5.2% in December. This is a negative factor for the CAD, which is also under pressure due to falling oil prices, and if the US Department of Labor report exceeds market expectations and turns out to be strong, then we should expect a sharp increase in the USD/CAD.

On the whole, the ascending dynamics prevails, and the consecutive breakdown of the resistance levels 1.3535, 1.3554, 1.3570 will create preconditions for further growth of the pair. The nearest target is the local resistance level 1.3700.

*) for the most important events of the week, see the Most Important Economic Events of the Week 02.01.2023 – 08.01.2023

Support levels: 1.3470, 1.3450, 1.3400, 1.3335, 1.3300, 1.3235, 1.3200, 1.3185

Resistance levels: 1.3535, 1.3554, 1.3570, 1.3615, 1.3700, 1.3800, 1.3830, 1.3900, 1.3977, 1.4000

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