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<\/figure>\n\n\n\nTurning to bearish signs, USDCAD is displaying overbought signals on the Daily Stochastic RSI. This, combined with nearby resistance at the Mid 2024 High pivots ($1.3784) and the breakout target ($1.3798) in the same area, signals a potential near-term reversal.<\/p>\n\n\n\n In case of a decline, a strong support cluster has formed on the daily chart, with the EMA 20\/50\/100\/200 aligning below the current USDCAD price near the Point of Control (POC) at $1.3610 CAD. Traders can watch for a potential bounce at this level.<\/p>\n\n\n\n Looking ahead, if USDCAD breaks and closes above its August 2024 highs at $1.3947, it would confirm a breakout of the 9-year range, opening the door for further upside targets, as highlighted in our Q4 Forex Forecast Report.<\/p>\n\n\n\n The markets are forward looking, and therefore, if the data released today are not according to expectations, USDCAD could see heightened volatility.<\/p>\n\n\n\n Currently, the expected forecasts are as follows:<\/p>\n\n\n\n Overall, the data presents a slight leaning towards a bullish USDCAD in the coming weeks, as the lowering inflation in the US implies less pressure to cut rates.<\/p>\n\n\n\n Additionally, the Canadian unemployment rate is rising, so while the Employment Change is increasing, this signals a slowdown in the Canadian economy. Such a divergence also signals that Canadians are potentially taking on more than one job to make ends meet, further signalling a slowdown in the Canadian economy.<\/p>\n\n\n\n A slowdown in the Canadian economy could lead to more rate cuts by the Bank of Canada, weakening the Canadian Dollar and therefore boosting USDCAD’s prices.<\/p>\n\n\n\n Technically, a bearish reversal from the current price zone or slightly higher on USDCAD is looming, but the fundamentals could support the price of USDCAD, especially at the EMA cluster\/POC region of $1.36.<\/p>\n\n\n\nAnchored Volume Profile: <\/strong>The volume profile is drawn from a significant pivot low in May 2021, which gives us the POC at $1.36099 CAD.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n How to Read Employment Change, Unemployment Rate, and PPI<\/h2>\n\n\n\n
Event<\/strong><\/td> Forecast<\/strong><\/td> Previous<\/strong><\/td> Implications<\/strong><\/td><\/tr> Canadian Employment Change<\/td> 29.8K<\/td> 22.1K<\/td> Bullish for USDCAD<\/td><\/tr> Canadian Unemployment Rate<\/td> 6.7%<\/td> 6.6%<\/td> Bullish for USDCAD<\/td><\/tr> US Core PPI m\/m<\/td> 0.2%<\/td> 0.3%<\/td> Bullish for USDCAD<\/td><\/tr> US PPI m\/m<\/td> 0.1%<\/td> 0.2%<\/td> Bullish for USDCAD<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Closing Thoughts<\/h2>\n\n\n\n