• With Canada Employment projected to increase another 10.0K in October, signs of stronger job growth may boost the appeal of the Canadian dollar and limit the topside risk for USD/CAD especially as the RSI largely preserves the bearish formation from back in July.
  • Data prints highlighting a stronger recovery may keep the Bank of Canada (BoC) on the sidelines at the December 2 policy meeting, but Governor Stephen Poloz may keep the door open to further embark on the easing cycle as the central bank tries to encourage a ‘soft-landing’ in the housing market.
  • Will continue to watch the downside risk for EUR/USD amid the recent series of lower highs & lows in the exchange rate, while the European Central Bank (ECB) pledges to further embark on its easing cycle; will keep a close eye on the July low (1.0807) as it lines up with the Fibonacci overlap around 1.0790 (50% expansion) to 1.0800 (23.6% expansion).
  • The bearish tilt in the Relative Strength Index (RSI) casts a long-term bearish outlook for EUR/USD especially as the pair fails to preserve the upward trend from earlier this year, but need the oscillator to push into oversold territory to favor a further decline in the days ahead.

Untitledeurusd10

USDOLLAR:

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

12114.94

12116.1

12077.86

0.26

75.51%

Retail FX Remains Net-Long EUR/USD Ahead of NFP- 1.0800 Key Support

Advertisements