USDCAD Slumps On Higher Crude Oil Price And U.S. Jobless Claims Data

USDCAD slumps after another dismal U.S. initial jobless claims. U.S. Initial Jobless Claims came in at 3169K, topping the forecasts of 3000K on May 1, the previous week reading was at 3.839K. The Unit Labor Costs came in at 4.8% topping the forecasts of 4% in the first quarter. The Nonfarm Productivity came in at -2.5% also above the forecasts of -5.5%.

From Canada the Ivey purchasing managers index for April came down to 22.8 below the expectations of 25.0; the March reading was at 26.0. The three-month average dropped to 34.3 from 45.8.

Canadian Loonie is also supported by the rebound in crude oil prices this week after the plunge to historic low prices in April. The WTI crude oil price returns above the 50-Day M.A. for the first time since January 13.

Download our Q2 Market Global Market Outlook

USDCAD Technical Analysis    

The USDCAD is 0.98% lower at 1.4005 testing the 50-day moving average making fresh weekly low. The pair tested the previous week also the 50-day moving average but managed to rebound. The technical picture remains bullish for the pair despite the recent pullback, while a break today below the 50-day moving average support might cancel the bullish momentum.     

On the downside, first support for USDCAD stands at 1.3997 the 50-day moving average and daily low. If the pair breaks below 1.3997, the next support will be met at 1.3927 the low from May 1st trading session. Next level to watch on the downside is at 1.3849 the low from April 30.  

On the flip side, the first resistance for USDCAD pair stands at 1.4173 the daily top. If the pair breaks higher, the next hurdle will be met at 1.4256 the high from April 21st trading session. If the bullish momentum continues, the next resistance stands at 1.4348 the high from March 31. 

Don’t miss a beat! Follow us on Telegram and Twitter.

More content