Technical Outlook

-EURCAD is showing a strong bearish trend, with a target at 1.4578-1.4538, but traders should be cautious of potential short-term rebounds.

-AUDUSD is neutral but with downside risks if it stays below the 0.6633 resistance, suggesting a bearish outlook with a target at the 0.644 low.

CA(CAD): Canada Unemployment Rate

The Unemployment Rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month.

A higher than expected reading should be taken as negative/bearish for the CAD, while a lower than expected reading should be taken as positive/bullish for the CAD.

The previous reading was 5.8%, in line with the expectations. The upcoming report is due on April 05, 2024 at 12:30 GMT. Its forecast stands at 5.9%.

EURCAD Technical Analysis:

The EURCAD pair is currently exhibiting a strong bearish trend after a breakout in the downward direction. With prices trading below the pivot level at 1.4665, the trend suggests a negative outlook for the pair. The immediate bearish target for the pair is set at 1.4578-1.4588 CAD. Should the price breach this support level, it could intensify the bearish momentum, pushing sellers to aim for the next supports at 1.4538 and 1.4480.

However, traders should exercise caution due to the intensity of the current bearish rally, which may lead to potential short-term rebounds. These pullbacks could present risks, hence it might be more prudent to wait for a clear signal that indicates a trend reversal before taking position.

Pivot Points: EURCAD

US (USD): U.S. ADP Nonfarm Employment Change

The ADP National Employment Report is a measure of the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 U.S. business clients. The release, two days ahead of government data, is a good predictor of the government’s non-farm payroll report. The change in this indicator can be very volatile.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

The previous reading was 140K worse than the expected 149K. The next report is due on April 03, 2024 at 12:15 GMT. Its forecast also stands at 149K.

AUDUSD Technical Analysis:

The current intraday trend for the AUDUSD pair is maintaining a neutral stance, with the overall market outlook remaining stable.

The potential for downside risk persists as long as the resistance zone at 0.6622-0.6633 is not breached. A decisive move below the support level of 0.6503 would suggest that the broader decline from the 0.6870 high is set to continue, thereby shifting the market bias towards the bearish side with an initial target at the 0.644 low.

Until there is a breakout above the 0.6633 resistance mark, the likelihood of a recovery remains subdued, keeping the downside risks in focus.

Top of Form

Pivot Points: AUDUSD

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