USDCAD has been extremely volatile and indecisive recently after breaking above 1.29 price area with a daily close. The price is still struggling to make a definite trend move in this pair which is currently expected to proceed higher in the coming days. The economic calendar contains a series of high impact economic reports from the US such as Non-Farm Employment Change, Unemployment Rate, and Average Hourly Earnings which are expected to show optimistic readings. Today ADP Non-Farm Employment Change report is going to be published which is expected to decrease to 199k from the previous figure of 234k, FOMC Members Bostic and Dudley are going to speak today about the nearest interest rate hike this month along with future monetary policies, investors expect to detect the hawkish stance in their comments. Market participants are currently quite biased with the US reports ahead of the upcoming Rate Hike this month. On the CAD side, there are high impact economic reports too. Today, Canada’s Overnight Rate decision is going to be published which is expected to be unchanged at 1.25% along with BOC Rate Statement expected to be quite neutral today. Moreover, this week on Friday, Canada’s Employment Change report is going to be published which is expected to show a significant increase to 21.8k from the previous negative figure of -88.0k and Unemployment Rate is expected to be unchanged at 5.9%. To sum up, this week the USD/CAD pair is likely to be highly volatile and indecisive until the weekly close on Friday but USD is expected to have an upper hand over CAD in the hsort term in light of the upcoming economic reports and events on the USD side this month.
Now let us look at the technical view. The price is currently residing above 1.29 price area, affected by impulsive bearish pressure yesterday that leding to a daily close below it. The market is currently quite indecisive ahead of the upcoming high impact economic reports and events from the US and Canada. As for the current scenario, the price is expected to trade with a bullish biased as it remains above 1.29 with a daily close which is more probable until price breaks below the 1.29 price area with a daily close.