The USD has surged against the majors over the past two weeks. This is partly due to a series of positive data coming from the USA and an overwhelmingly high consensus of a 0.25% bp rate hike next week. Ahead of NFP data coming up in a few hours, let’s take a look at USDCAD and NZDUSD key levels to watch.
10 March, AtoZForex – According to analysts, the US is expected to have added 185,000 jobs for the month of February. This is a little lower than the 227,000 added in January 2017. Ahead of this release, the USD has remained steady. In the London session on Friday, the USD is currently trading higher against the JPY and the GBP.
USDCAD and NZDUSD key levels: USDCAD key resistance nears
The major level to watch on the USDCAD pair is the 1.36 handle. This level stands as the the November and December 2016 highs. This level also doubles as the 50% fibonacci level from the high (1.4625) and low (1.2450) in 2016. As price approaches this level for the first time in 2017, it could prove an important decision making point once again.
As with the other commodity currencies, the Loonie crashed in February, falling against the EURO, USD, CHF, and the JPY. If the 1.3600 key resistance is taken out, further resistance can be found at 1.3750 and 1.3850 (61.8% fibonacci level).
USDCAD and NZDUSD key levels: NZDUSD approaches key support level
As with the CAD, the NZD also took a beating in February. This came as a result of the dovish comments during the RBNZ rate statement early February. Since then, the NZDUSD has crashed from a high of 0.7374 to current levels around 0.69. The current level however stands as a strong pivot for price as it has supported the pair several times.
The key level to watch on NZDUSD is 0.6900. It is worthy to note that this level stands as the October and December 2015 highs as well as January 2017 low. On the weekly chart, this same level also doubles as a trend line support.
If the key support gets taken out, further support can be found at 0.6700 (May 2016 low) and 0.6500 (2010 low).
What is your view on our USDCAD and NZDUSD at key levels ahead of US jobs report? Please share your view in the comments section below.