USDCAD rebounds off 50% retracement support

The USDCAD is moving higher as sellers over the last few days cover some short against a support target defined by the 50% midpoint of the move up from the October low to the October high. That midpoint comes in at 1.3733. Also near the midpoint is a swing area between 1.3735 and 1.3743.

The low price yesterday – and in the 1st hour of trading today – came in at 1.3735. The current price is trading at 1.37579 as shorts cover. The next upside target comes at 1.3772 (the broken 38.2% retracement). Tomorrow the US jobs report will be released but so will the

Tomorrow, the US jobs will be released at 8:30 AM ET, but so will the Canadian employment statistics for the month of October. Last month, a greater than expected 63.8K jobs were added but 47.9K more part-time and 15.8K were full-time.

The expectations are for October to show a gain of 22.5K. The unemployment rate is expected to tick up to 5.6% from 5.5%. The participation rate last month came in at 65.6%.

Most times the US jobs report overshadows the Canadian jobs report released on the same trading day. Nevertheless, the 50% midpoint will be a key barometer for both buyers and sellers on a move to the downside. Break below that level and traders will look toward a swing area between 1.3687 and 1.3700

On the topside, getting above the 38.2% retracement would have traded looking back toward the 200-hour moving average at 1.38068..

This article was written by Greg Michalowski at Source