Against the background of weak employment data in Canada, the USD/CAD pair shows an upward trend, trading at 1.2559.
The number of new jobs created last month was only 94.0 thousand, which was significantly lower than the 177.5 thousand expected by analysts, and was much lower than the June figure of 230.7 thousand. The value was reflected in the overall unemployment rate, which reached 7.5% against the expected 7.4%. The share of the economically active population remained unchanged and amounted to 65.2%.
Data on the labor market in the United States, on the contrary, pleased investors. The number of people employed in the non-agricultural sector increased to 943 thousand from 938 thousand in June, which exceeded forecasts at the level of 870 thousand. Although employment in the private non-agricultural sector did not increase compared to June data, it turned out to be better than the analysts ' forecast, amounting to 703 thousand against 700 thousand. The overall unemployment rate in the country fell to 5.4% from 5.9% in the previous period, which was a positive signal for investors waiting for the US Federal Reserve to take action to wind down the quantitative easing program.
Support and resistance levels
On the global chart, the price has overcome the upper limit of the descending channel and is trying to gain a foothold lower within the forex forecast. The range of fluctuations of the EMA on the alligator indicator has narrowed almost completely, and the histogram of the AO oscillator has moved into the buy zone.
- Resistance levels: 1.2654, 1.3335.
- Support levels: 1.2420, 1.2000.
Trading Scenarios
Thus, USD/CAD forecast of the Canadian Dollar for August 10-11, 2021 if the global growth of the asset continues, as well as the price fixes above the level of 1.2654, buy positions with a target of 1.3335 will be relevant. The stop loss is 1.2500. Implementation period: 7 days or more.
In the event of a reversal and a continuation of the local decline of the asset, as well as consolidation below the 1.2420 mark, sell positions with a target of 1.2000 will be relevant. The stop loss is 1.2500.