- US dollar lost its lust against the Canadian dollar recently, as the USDCAD pair started to move down.
- There was a monster trend line support break for the USDCAD pair, which opened the doors for more losses.
- US Initial Jobless Claims released by the US Department of Labor posted a decline from 269K to 262K.
- US Continuing Jobless Claims missed the mark, and posted a reading of 2.273M, against the forecast of 2.250M.
The USDCAD pair formed a nice bearish structure, and moved down. The most important thing is that the pair broke a monster trend line on the hourly chart, which may ignite more declines in USDCAD. The pair is well below the 100 and 200 hourly simple moving average, which is a sign that sellers are in control.
The pair is currently finding sellers near the 23.6% fib retracement level of the last drop from the 1.3899 high to 1.3653 low.
On the downside, a break below the 1.3650 level may take the pair back towards the 1.3600 area.
US Initial Jobless Claims
Today, the US saw a couple of low risk economic releases, including the Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance by the US Department of Labor. The forecast was slated for a rise from the last reading of 269K to 275K. However the outcome was above the forecast, as the US Initial Jobless Claims declined to 262K.
On the other hand, the US Continuing Jobless Claims missed the mark, and posted a reading of 2.273M, against the forecast of 2.250M.
Overall, the US Dollar may recover a few pips against the Canadian Dollar, but it may find resistance near the broken trend line.