The Canadian Dollar Adjusts After Positive Job Report Data

• 4 Dec 2017

USD/CAD

As previously reviewed, the USD/CAD had hit a recent market top and was testing the 1.288 price level. However, a strong bearish move has resulted in the pair testing the 1.276 price level and the 20-period EMA. RSI sank and has now begun to recover with a more positive upward trajectory. The next price target for buyers will be the 1.276, yet with few major events today, the question is whether there is enough momentum to drive prices higher.

CAD/CHF

The CAD/CHF has seen some strong bullish moves despite an apparent rise in selling pressure in Friday’s trading session. Having broken the 0.763 and 0.770 price level, the pair are now testing the 20-period EMA. RSI supports the bullish momentum with a strong upward trajectory. Volume has also been rising in recent trading sessions which indicates strong conviction from buyers.

GBP/CAD

The GBP/CAD pair has begun a reversal from overbought conditions to test the 1.710 price line. Selling pressure seems present as the current trading session candlestick forms. RSI has also pushed below the overbought threshold and has a marked downward trajectory. Rising volume suggests that the bearish momentum will continue. A full break of the 1.710 price level and a drop below the 20-period EMA would give weight to the downtrend.

EUR/CAD

The EUR/CAD pair follows the same pattern as the GBP/CAD although, it appears the Euro is making a recovery despite the break of the 1.510 price level. Currently the pair is also testing the 20- period EMA, however momentum indicators have paused. RSI has flattened at the 50 support line and MACD has flattened above the zero line.