Today, Canada released disappointing data on employment and building permit. Building permits dropped by 6.5% against the forecast of 2% decline. The employment change came out at -1.8K, below the forecast of 15.9K and the previous result of 53.7K. The unemployment rate, however, remains stable at 5.5%.
The Bank of Canada is amongst the central banks that have not cut their interest rates this year. The current interest rate is 1.75%. The next decision is scheduled for December 4, and we will have to watch Canada’s statistics closely to see if BoC joins the dovish trend.
On a daily TF for USD/CAD, the price moved back above the trend line up from the year of 2012–a strong and valid area of support. The price is trying to break above the 200EMA, having pierced the 50 EMA up, the 9 EMA is pointing up.
We can see that the MACD crossover on October 31. The MACD bullish histogram is increasing. The RSI is at 60. The Parabolic SAR is pointing up.
Resistance: R1 50% Fibo 1.32913, R2 61.8% Fibo 1.33559, R3 1.33827.
Support: S1 23.6% Fibo 1.31468, S2 1.30554, S3 1.30176.
On a daily TF, EUR/USD dropped to the 50% Fibo level, and is now trading around 1.10269. The pair has entered the Ichimoku Cloud. The Ichimoku Cloud bias remains bullish. There was a MACD crossover on Tuesday, the MACD histogram is growing. The RSI is at 40. We may see further movement down before there is a retracement up.
Resistance: R1 38.2% Fibo 1.10647, R2 23.6% Fibo 1.11086, R3 1.11795.
Support: S1 1.10000, S2 Bottom of Ichimoku Cloud 1.09733.
Resistance: R1 109.705, R2 110.679, R3 111.107
Support: S1 50% Fibo 108.423, S2 38.2% Fibo 107.484, S3 106.882.