USD/CAD Forecast Ahead of the US Nonfarm Payrolls Data

USD/CAD is on a bullish consolidation pattern ahead of the highly anticipated NFP data. Analysts expect an addition of 700,000 nonfarm jobs in June. The figure is higher than the prior month’s 559,000.

As for the US unemployment rate, the forecasted 5.7% for June is a point lower than the prior month’s 5.8%. The incomplete recovery of the labor market is one of the reasons why the Federal Reserve has maintained an accommodative monetary policy.

USD/CAD will also be reacting to Canadian trade balance and building permit data. The outcome of the ongoing OPEC+ meeting, and the subsequent crude oil price movements will impact the Canadian dollar.

USDCAD technical outlook

USD/CAD is on a bullish consolidation pattern after its surge in the previous session. After hitting an intraday low of 1.2363 on Thursday, the currency pair rose to consolidate at around 1.2445. At the time of writing, it was down by 0.02% at 1.2431.  Since the beginning of the week, it has surged by about 1.15%. On a two-hour chart, it is trading above the 25 and 50-day exponential moving averages.

As the week comes to the end, USD/CAD price movements will largely depend on the highly anticipated NFP data later in the day. Better-than-expected numbers may push the pair to last week’s high of 1.2487 and beyond at 1.2500.

On the flip side, bearish figures are likely to trigger a decline along the prior resistance-turn-support level of 1.2409. A move below that will push the support level to Thursday’s low of 1.2363.

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USD/CAD price chart

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