Key Highlights
- USD/CAD is facing a strong resistance near 1.2090 and 1.2100.
- A major bearish trend line is forming with resistance near 1.2080 on the 4-hours chart.
- EUR/USD is stable above 1.2150, GBP/USD is aiming a clear break above 1.4200.
- The US ADP Employment could change 650K in May 2021, down from the last 742K.
USD/CAD Technical Analysis
After forming a base above 1.2000, the US Dollar started a fresh increase against the Canadian Dollar. USD/CAD broke the 1.2050 resistance, but it struggled to clear the 1.2100 resistance zone.
Looking at the 4-hours chart, the pair traded as high as 1.2092 and recently corrected lower. It traded below the 1.2075 support level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The pair even traded below the 50% Fib retracement level of the upward move from the 1.2006 low to 1.2092 high. The next major support is near the 1.2030 level.
The 76.4% Fib retracement level of the upward move from the 1.2006 low to 1.2092 high is near the 1.2028 level. Any more losses could trigger a risk of a break below the 1.2000 level.
On the upside, the pair is facing resistance near the 1.2080 level. There is also a major bearish trend line forming with resistance near 1.2080 on the same chart. A successful break above the trend line resistance could increase the chances of a move above 1.2100. The next major resistance could be 1.2140.
Besides, EUR/USD is trading nicely above the 1.2150 support zone. GBP/USD corrected lower once again, but the bulls protected the 1.4100 support.
Economic Releases
- Germany’s Services PMI for May 2021 – Forecast 52.8, versus 52.8 previous.
- Euro Zone Services PMI for May 2021 – Forecast 55.1, versus 55.1 previous.
- UK Services PMI for May 2021 – Forecast 61.8, versus 61.8 previous.
- US Services PMI for May 2021 – Forecast 70.1, versus 70.1 previous.
- US ISM Services Index for May 2021 – Forecast 63.0, versus 62.7 previous.
- US ADP Employment Change May 2021 – Forecast 650K, versus 742K previous.
