USD/CAD has been impulsive with the bearish gains since its break below the 1.27 support area recently. CAD has been the dominant currency since Canada published positive economic reports and events that helped the currency to strengthen against USD. On Friday, the US will unveil its the NFP, Average Hourly Earnings and Unemployment reports. Today, the ADP Non-Farm Employment Change report is going to be published, which is expected to increase to 191k from the previous figure of 190k; Unemployment Claims are anticipated to decrease to 241k from the preceding reading of 245k; the Final Services PMI is projected to be unchanged at 52.4; Natural Gas Storage is forecasted to show a greater decline of 221B compared with the previous gain of 112B; and Crude Oil Inventories are expected to drop by 5.2M in comparison with the previous fall of 4.6M. On the CAD side, RMPI report is going to be published today, which is expected to increase by 4.0% (3.8% previously) and the IPPI report is expected to show a slowdown to 0.8% from 1.0%. Moreover, tomorrow high-impact economic reports like Employment Change, Trade Balance and Unemployment Rate reports are going to be published in Canada alongside USD high-impact economic reports, where the market is expected to be very volatile and corrective on the mean time. As of the current scenario, USD is expected to gain momentum after a certain spike down tomorrow and a weekly close will provide an upcoming movement hint on this pair to be traded on in the coming days.
Now let us look at the technical view. The rice is currently expected to reach the 1.2450 support area before bouncing up higher towards the 1.2700 resistance area and towards dynamic level of 20 EMA in the coming days. As of the upcoming high-impact economic reports, the pair is expected to be very volatile and a weekly close above or below the support area will lead to further decision on this pair. As the price remains above 1.2450 with a daily close, the bullish bias is expected to continue further.
