The Canada jobs report will be released at 830 with the employment change expected at -5.0 K versus 66.6 K last month. The unemployment rate is expected to tick up to 7.0% from 6.9%. The full-time employment last month came in at -18.5 K. The part-time employment search by 85.1 K. Finally the participation rate came in at 65.3% last month.
Traders have taken the USDCAD lower over the last 8 or so days, keeping the price below the 100 hour moving average in the process. However, the price decline has also stalled near the 50% midpoint of the move up from the mid September low at 1.39367. The current price is trading at 1.3935 just ahead of the release.
On the topside the 100 hour moving average and swing area between 1.3968 and 1.3975 will be a key barometer to get above and stay above if the buyers are to stay in control. On the downside the 100 day moving average at 1.3901 and the 200 day moving average at 1.3888 are key targets to get below to increase the bearish bias.
The video above outlines the key levels and explains the “whys” from a technical perspective.
This article was written by Greg Michalowski at investinglive.com.