FX.co ★ Wiking | USD/CAD

Selling pressure is weighing on the Canadian Dollar (CAD) against the US Dollar (USD) on Friday. In the Eurozone trading session, USD/CAD gained 0.45% to reach 1.4073. The loonie pair has strengthened on the US dollar's superior performance ahead of the release of October Non-Farm Payroll (NFP) figures from the United States (US). The US Dollar Index (DXY), which measures the value of the Greenback against six major currencies, is trading 0.35% higher at around 101.95. The USD Index is rising as its safe-haven status improves amid the global Artificial Intelligence (AI) selloff. TD Securities reports that non-farm payroll employment in October will stay weak, with economists expecting "headline jobs growth to be 40k after job gains slowed to 29k in September." The company explains that "although this will be a soft print, our forecast would fall into the range of breakeven job gains and lead to an expansion in the three-month average." However, the company adds that "risks to our payrolls forecast are to the upside." Another set of data investors are waiting for is the Canadian labor market data for October, along with the release of US NFP. Canadians are expected to add 13.6K jobs after laying off 68.3K workers in September. The Unemployment Rate is projected to stay unchanged at 6.5%. On the four-hour chart, USD/CAD is trading at 1.4074, and the short-term outlook looks bullish as long as price stays above the 20-period EMA at 1.4000 and key Fibonacci retracement levels at 1.4017 (50.0%) and 1.3950 (61.8%). The Relative Strength Index (14) has entered the overbought region, near 71.6, indicating the current rally may be overstretched despite overall positive sentiment on any pullback. Upside resistance is likely at the 38.2% Fibonacci retracement level of 1.4084, followed by the 23.6% level of 1.4167, and even 1.4302 if positive momentum persists. On the downside, initial support is expected at the 50.0% Fibonacci retracement level of 1.4017, followed by the 20-period EMA at 1.4000. In comparison, a deeper retracement will target the 61.8% Fibonacci retracement level at 1.3950 and 1.3733 as structural support.