Published on Apr 7, 2023

Daily Analysis For USD/CAD 07-04-2023

USD/CAD Analysis

Economic Events and Scenario for USD/CAD

Economic Events : -

GMT	Event	Impact	Currency
00:30	(Japan) Overtime Pay YoY	Low	JPY
00:30	(Japan) Household Spending YoY	Low	JPY
00:30	(Japan) Household Spending MoM	Low	JPY
00:30	(Japan) Average Cash Earnings YoY	Low	JPY
00:50	(Japan) Foreign Exchange Reserves	Low	JPY
01:00	(Australia) Good Friday	None	AUD
01:00	(Belgium) Good Friday	None	EUR
01:00	(Canada) Good Friday	None	CAD
01:00	(Ecuador) Good Friday	None	USD
01:00	(El Salvador) Good Friday	None	USD
01:00	(Estonia) Good Friday	None	EUR
01:00	(Euro Area) Good Friday	None	EUR
01:00	(Finland) Good Friday	None	EUR
01:00	(Germany) Good Friday	None	EUR
01:00	(Latvia) Good Friday	None	EUR
01:00	(Luxembourg) Good Friday	None	EUR
01:00	(Malta) Good Friday	None	EUR
01:00	(Netherlands) Good Friday	None	EUR
01:00	(New Zealand) Good Friday	None	NZD
01:00	(Portugal) Good Friday	None	EUR
01:00	(Spain) Good Friday	None	EUR
01:00	(Switzerland) Good Friday	None	CHF
01:00	(United Kingdom) Good Friday	None	GBP
01:00	(United States) Good Friday	None	USD
04:35	(Japan) 3-Month Bill Auction	Low	JPY
05:30	(Netherlands) Household Consumption YoY	Low	EUR
05:30	(Netherlands) Manufacturing Production MoM	Low	EUR
06:00	(Japan) Leading Economic Index	Low	JPY
06:00	(Japan) Coincident Index	Low	JPY
07:00	(Lithuania) Balance of Trade	Low	EUR
07:45	(France) Imports	Low	EUR
07:45	(France) Exports	Low	EUR
07:45	(France) Current Account	Low	EUR
07:45	(France) Balance of Trade	Medium	EUR
08:00	(Austria) Industrial Production YoY	Low	EUR
08:30	(France) Foreign Exchange Reserves	Low	EUR
09:00	(China) Foreign Exchange Reserves	Low	CNY
10:00	(Greece) Balance of Trade	Low	EUR
13:30	(United States) Manufacturing Payrolls	Low	USD
13:30	(United States) Nonfarm Payrolls Private	High	USD
13:30	(United States) Unemployment Rate	High	USD
13:30	(United States) Non Farm Payrolls	High	USD
13:30	(United States) Participation Rate	Medium	USD
13:30	(United States) Government Payrolls	Low	USD
13:30	(United States) Average Weekly Hours	Low	USD
13:30	(United States) Average Hourly Earnings MoM	Medium	USD
13:30	(United States) Average Hourly Earnings YoY	Medium	USD
14:00	(United States) Used Car Prices MoM	Low	USD
14:00	(United States) Used Car Prices YoY	Low	USD
20:00	(United States) Consumer Credit Change	Low	USD

Today's Scenario: - The USD/CAD currency pair is currently losing some ground and trading around 1.3490, after posting weekly gains. However, the market is sluggish due to the early Good Friday holiday and traders are looking for more clues to make their next move. Additionally, investors are cautious ahead of the release of the US employment data for March, which could have a significant impact on the pair.

Buy Scenario: - Looking at the daily chart of USD/CAD, the pair remains neutral to slightly bullish despite experiencing a 2.85% decline since March 24. Buyers prevented the pair from testing the 200-day Exponential Moving Average (EMA) at 1.3374 and are now trying to reclaim the 100-day EMA at 1.3515. However, the upside potential may be limited by the confluence of the 20 and 50-day EMA at around 1.3568/75, which could lead to a continuation of the downtrend and a possible test of the 200-day EMA. Till we do not advise to buy USD/CAD.

Sell Scenario: - On the other hand, if the pair manages to break above the 1.3575 level, it could continue its upward momentum towards 1.3600, followed by 1.3705 (December 16 cycle high) and 1.3804 (March 24 daily high).

The Relative Strength Index (RSI) has turned upwards but remains in bearish territory, suggesting that sellers are still in control and the current correction may be short-lived. Meanwhile, the Rate of Change (RoC) indicates that buyers have entered the market, but sellers may still outweigh them. Till we do not advise to sell USD/CAD.

Support and Resistance Level: -