The USD/CAD breaks below the long term trendline after employmen
Today, we want to focus on the USD/CAD, and the impact that last Friday’s US and Canadian employment numbers had on the currency pair.
The NFPs came in significantly below expectations, at just 75,000 points against the 175,000 expected, with Average Hourly Earnings also disappointing MoM with just 0.2% against the expected 0.3%.
On the other hand, the Canadian Employment data came in strong, with a net change in employment of 27,700 versus an 5,000 estimate, while the unemployment rate came in at 5.4% versus the 5.7% expected.
As a result, the USD/CAD dropped significantly below the long term trendline and attacking the crucial support region around 1.3280. A break below would clearly identify the attempt to break above 1.3500/3550 as a fake-out, and activate as a first target 1.3170 on the downside.
A potential driver lower could come from solid housing numbers from Canada, while any disappoint in JOLTs Jobs openings could trigger further US recession fears among market participants.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The NFPs came in significantly below expectations, at just 75,000 points against the 175,000 expected, with Average Hourly Earnings also disappointing MoM with just 0.2% against the expected 0.3%.
On the other hand, the Canadian Employment data came in strong, with a net change in employment of 27,700 versus an 5,000 estimate, while the unemployment rate came in at 5.4% versus the 5.7% expected.
As a result, the USD/CAD dropped significantly below the long term trendline and attacking the crucial support region around 1.3280. A break below would clearly identify the attempt to break above 1.3500/3550 as a fake-out, and activate as a first target 1.3170 on the downside.
A potential driver lower could come from solid housing numbers from Canada, while any disappoint in JOLTs Jobs openings could trigger further US recession fears among market participants.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.