USD/CAD Exchange Rate Prediction – The Dollar Eased Versus the Loonie
The dollar reversed course versus the loonie and moved lower. Yields also moved lower following weaker than expected Jobless claims data. The markets are now adjusting the Fed meeting on Wednesday. U.S. Federal Reserve’s decision to keep interest rates unchanged and to double the pace of quantitative easing tapering.
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Technical analysis
The dollar traded lower against the Loonie. The exchange rate reversed through long term resistance near an upward sloping trend line, but finished off the highs of the trading session. Support is near the 10-day moving average at 1.2760. Additional support is seen near the 50-day moving average at 1.2552. Short-term momentum has turned negative the fast stochastic generated a crossover sell signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in positive territory with a rising trajectory which points to a higher exchange rate.
Employment Data Slipped
First-time jobless claims rose to 206,000, above the 195,000 expected gain of 18,000 from the previous week’s upwardly revised 188,000. According to the Commerce Department figures, the four-week moving average totaled 203,750, the lowest level since November 15, 1969. Continuing claims, data for which runs a week behind the headline number declined 154,000 to 1.845 million, the lowest since March 14, 2020.