The story of the day continues to be the meltdown in WTI crude oil USOIL (-5.29%). One of many key outcomes has been a steep rally within the USD/C
The story of the day continues to be the meltdown in WTI crude oil USOIL (-5.29%). One of many key outcomes has been a steep rally within the USD/CAD (+0.59%), the primary such bullish breakout since late-February. Now, charges are on the cusp of a key 38% Fibonacci resistance stage. Will bidders be capable of change the long-term bearish trajectory of the Loonie?
On the financial information entrance, as we speak introduced the weekly U.S. jobless claims numbers. Listed below are the highlights:
Occasion Precise Projected Earlier
Persevering with Jobless Claims 4.124M 4.070M 4.142M
Preliminary Jobless Claims 770Okay 700Okay 725Okay
As an entire, this set of stats alerts an uptick in unemployment. Nevertheless, Canada’s ADP Nonfarm Employment Change got here in at -100,800, nicely above the earlier launch (-65,800). So, for the USD/CAD, this morning’s jobs numbers evened one another out.
One bit of information worthy of notice is as we speak’s Philly Fed Manufacturing Index (March). Figures got here in at 51.8, greater than doubling projections (23.0) and the earlier launch (23.1). It is a traditionally robust report and an especially constructive signal concerning the COVID-19 restoration.
USD/CAD Surges As WTI Plunges
For the primary time in additional than per week, the USD/CAD is able to shut definitively within the inexperienced. Charges are above 1.2460 and driving towards 1.2500.
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As we strategy the top of the week, there may be one stage on my radar for the Loonie:
- Resistance(1): 38% Present Wave Retracement, 1.2507
Backside Line: So long as the Spike Low (1.2365) is the underside of the USD/CAD market, I’ll have promote orders within the queue from 1.2494. With an preliminary cease loss at 1.2529, this commerce produces 25 pips on a barely sub-1:1 danger vs reward ratio.