The USDCAD slid about 30 pips as the Canadian Employment reports surprised the markets in a positive manner. The unemployment rate dropped to 5.5%, lower than the previous figure of 5.7%. The Canadian Employment change was a positive figure, coming in at 53.7K as against the consensus number of +11.2K.
The combination of a positive employment change and a lower unemployment rate was good for the CAD, with the USDCAD hitting the initial target I mentioned in the preview of this economic indicator.
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Outlook for USDCAD
The USDCAD has hit the initial targeted price of 1.3224 (S2 pivot), and has continued on downwards in an attempt to hit the S3 pivot price of 1.3180 (lows of 24 June and 13 August). This level should constitute the next target if trade talk headlines that impact the USD do not tamper with this run.
On the flip side, the S1 pivot now becomes the new resistance on the day, and this could be a target for a pullback move if profit taking were to occur, or if USD-positive trade headlines override the impact of the Canadian Employment change data.