Market conditions: the American resists pressure, the Canadian strengthens on positive employment data!

Trades in the European session were held under the sign of correction of the euro and pound against the American. As a result of this pair, EUR/USD and GBP/USD lost half of their positions yesterday, despite the mixed dynamics of European stock indices and the profitability of the US state bonds that are trading below zero.

Regarding commodity currencies (AUD and NZD), the US currency remained virtually unchanged, trading within the previous day. The exception was the Canadian dollar, which received significant support based on positive employment data in Canada.

As a result, the pair USD/CAD almost completely played a weekly decline and aimed at the lower boundary of the rising channel, which is in the zone 1.2720-40. In this zone, one should expect a slowdown in downward dynamics and the formation of a correction.

The USD/CAD chart. The current price is 1.2750.

The dynamics of the US dollar index was slightly corrected against yesterday’s decline, but it remains in a downward trend. The main resistance has shifted to the level of 93.200, from which the repulse is expected and  the resumption of the decline.

The US dollar index graph. The current price is 93.100.

Hanzenko Anton