Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
USD/CAD Struggles as Multi-Month Trend Resistance Holds Firm

USD/CAD Struggles as Multi-Month Trend Resistance Holds Firm

Nick Cawley, Senior Strategist
What's on this page

Canadian Dollar (USD/CAD Price, News and Analysis:

  • The Canadian dollar continues to appreciate against the greenback.
  • Thursday’s US labor report the next key driver.
Top Trading Lessons
Top Trading Lessons
Recommended by Nick Cawley
Find Out the Number One Mistake Traders Make
Get My Guide

USD/CAD Respecting Trend Resistance

USD/CAD is now testing support off the 200-day moving average and may well re-test the June 23 low at 1.3484 if a break is confirmed. The pair are also being steered lower by multi-month trend resistance which held firm at 1.3702 yesterday before the pair sold off sharply after Canadian monthly GDP for April beat expectations and official commentary provided a positive outlook. While the -11.6% fall was the largest on record, Statistics Canada said that economic activity had picked up and ‘preliminary information indicates an approximate 3% increase for GDP in May’.

On Thursday, the latest US labor report (NFPs) will be released at 13.30 UK with the unemployment rate expected to fall to 12.3% from 13.3% in May. Last month’s NFP report shocked the market who were looking for an unemployment rate of near-20%, although the BLS did report that due to vagaries in some worker’s classification for the survey, then the unemployment rate ‘would have been about three percentage points higher than recorded’.

The daily USD/CAD chart shows the pair touching both the 20- and 200-dma today after once again rejecting multi-month trend resistance. A break and close below both these moving averages would open the way to the previously mentioned 1.3484 level before 1.3400 and 1.3316 come into view. The 200-dma has held for the last 2-3 weeks. To the upside, the 61.8% Fibonacci retracement level at 1.3608 may slow down the pair before trend resistance, currently around 1.3685, comes into play. Today’s trading range is small and the next break may not come until after tomorrow’s NFP release.

DailyFX Economic Calendar

USD/CAD Daily Price Chart (December 2019 – July 1, 2020)

USD/CAD Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 6% -1% 4%
Weekly 74% -55% -12%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

What is your view on the Canadian Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.