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USDCAD Breaks Above 1.33 After Upbeat NFP Data

Written By: Nikolas Papas
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Forex
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USDCAD
USDCAD

USDCAD brakes above 1.33 after the NFP upbeat report. The government reported that the economy added 225,000 new positions in January. The figure was well above the forecast, (145,000 – 158,000) new positions. The jobless rate ticked up from 3.5% to 3.6% the expectations was for 3.5%. US Average Earnings for January came in at 0.2% below the forecasts of 0.3% and above the previous reading of 0.1%. The yearly reading on US Average Earnings came in at 3.1% above the forecasted 3.0%. The US Participation Rate registered at 64.4% topping the forecasts of 63.1%.

On the other hand the economy in Canada added more than double the number of jobs than expected in the first month of the year. Statistics Canada reported that 34,500 jobs had been created in January, the second month in a row of strong gains after a record loss in November. The analysts expected an increase of 15,000. The unemployment rate in Canada dropped to a near record-low 5.5% below the expectations of 5.6%. The Canada Ivey Purchasing Managers Index rose from previous 43.6 to 51.1 in January. The strong economic data might persuade the Bank of Canada not to cut rates next month.

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USDCAD Technical Outlook

The USDCAD pair makes today fresh two-month highs as the US dollar taking a boost from the stronger NFP data. The Canadian loonie got a hand from stronger employment data but is dragged down by the continues weakness in crude oil prices.  The USDCAD outlook is clearly bullish.

On the upside now, bulls will face the first resistance at 1.3321 the daily top and also a two-month high. Next target on the upside is at 1.3348 the high from October 3rd 2019.  In case of a bullish breakout the next resistance stands at 1.3381 the high from September 3rd.

On the flip side, first support for the USDACD pair stands at 1.3278 the daily low. If the pair breaks below that support, the next support level will be met at 1.3226 the 200-day moving average. If the correction continues then the next target will be met at 1.3181 the 100-day moving average.