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.
Technical Levels to Watch
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.