The USD/CAD pair was little changed after the Canadian jobs report. Although the employment change fell by -2.8K jobs versus estimates of +22.5, full-time jobs increased by 61.6K jobs. Part-time jobs fell by -64.4K jobs, which offset those gains. The strength in full-time jobs outweighed the declines in part-time jobs. The unemployment rate also held steady at 6.4% versus estimates of 6.5%.
Looking at the hourly chart, the price broke below its 200-bar moving average on the 4-hour chart and the 61.8% retracement of the move up from the July low at 1.37247 in the late Asian/early European session today, but momentum was limited and the price returned above this support target. A break below this level – and holding below it – is necessary to increase the bearish bias with its 100-day moving average at 1.36905 as the next major target.
On the upside, the 50% midpoint of the same upside move formed resistance yesterday and remains resistance in today’s trading. A move above this level would have traders targeting the 100-bar moving average on the 4-hour chart at 1.37923 and then the 1.3803-09 area.
During the week, the pair recorded a high on Monday at 1.39458, the highest price dating back to October 2022, but fell from the 2022 high at 1.39770 before reversing sharply lower.
To learn more about the USDCAD pair’s movements this week, watch the video from yesterday: