The USDCAD moved lower on Friday, driven by a stronger-than-expected Canadian jobs report. Employment surged by 66.6K (vs. -5K expected) while the unemployment rate fell to 6.9% from 7.1%, giving the Canadian dollar a boost. The pair dropped to test the 200-hour moving average (green line), fluctuating around that level into the close as traders booked profits near 1.4038 after the midweek highs near 1.4140.
In early Monday trading, the pair attempted to push higher during the Asian session, but momentum quickly faded, sending the price back below the 200-hour MA and shifting bias back to the sellers. The decline extended through the 50% midpoint of the October–November rise at 1.40135, before finding buyers near 1.4000, a key psychological and swing-area support (with resistance at 1.4007).
Going forward, a break below 1.4000 would be a bearish signal, likely triggering further downside momentum toward the next key support zone between 1.3968 and 1.3975. Staying above 1.4000, however, keeps the pair in a consolidative mode with traders eyeing the 200-hour MA as the near-term pivot for directional bias (at 1.4043).
This article was written by Greg Michalowski at investinglive.com.