The USD/CAD is up 0.53% on the day after the jobs reports of both neighbours showed contrasting fortunes.
The US saw its economy add 943K non-agric jobs, reducing the unemployment rate from 5.9% to 5.4%. In contrast, Canada only added 94K jobs, far less than the previous month’s creation of 239.7K jobs. The unemployment rate in Canada also fell from 7.8% to 7.5%, but both data sets did not meet the market expectations.
With the US outpointing Canada on another Friday of a double jobs report release, the greenback saw fresh demand at the expense of the loonie, allowing the USD/CAD to post an upside move this Friday.
The breakout from the wedge sets the USD/CAD up for a measured move towards 1.26477. This move needs to take out 1.25964, which serves as the immediate resistance barrier. A further advance could bring in 1.27419 and 1.27978 into the picture.
On the flip side, rejection at 1.25964 leads to a return move that tests the integrity of the 1.24790 support level. Loss of this integrity allows 1.24489 to become a new downside target, with 1.23998 and 1.23028 serving as potential targets below this level. This move would also invalidate the wedge.
This article was originally published on InvestingCube.com. Republishing without permission is prohibited.