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USD/CAD rebounds from the 200-day EMA, approaching 1.4160 ahead of the US and Canada’s March employment data.
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US President Trump's tariffs are anticipated to affect the global economic outlook.
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Fed Chairman Jerome Powell is expected to offer insights into how tariff-driven inflation may influence the Fed's monetary policy.
The USD/CAD pair rebounds to around 1.4160 during European trading hours on Friday, recovering from a nearly four-month low of 1.4026 reached on Thursday. The US Dollar (USD) gains support despite concerns over the US economic outlook following President Donald Trump's announcement of reciprocal tariffs.
The US Dollar Index (DXY), which measures the Greenback against six major currencies, climbs to near 102.60 from recent lows of 101.25.
Investors are now focused on labor market data from both the United States and Canada, set to be released at 12:30 GMT. The US economy is expected to have added 135,000 new jobs in March, while Canada is anticipated to have gained 12,000. Additionally, Federal Reserve Chairman Jerome Powell’s speech later in the North American session will be closely watched for any guidance on the central bank's monetary policy outlook.
USD/CAD has bounced back from 1.4026, testing the breakdown of horizontal support near the 1.4160 level, which was formed from the February 17 low. The pair found support near the 200-day Exponential Moving Average (EMA), which stands around 1.4070.
The 14-day Relative Strength Index (RSI) is struggling to recover above 40.00. A fresh bearish momentum could materialize if the RSI fails to rise above this level.
If the pair breaks below the December 6 low of 1.4020, the next target could be the psychological support at 1.4000, followed by the November 25 low at 1.3927.
On the other hand, if the pair breaks above the April 3 high of 1.4320, it could push the pair higher towards the April 1 high of 1.4415 and the March 14 high of 1.4447.
USD/CAD daily chart
