A largest job gain going back to September 2008 has propelled the CAD higher (the USDCAD lower). Having the gains mostly in full time employment is also quite impressive. It is only one month after 4 months of rather anemic job growth, but it is a step in the right direction.
For the USDCAD, the fall keeps the range in tact for the pair after sniffing at the parity level in overnight trading.
Looking at the daily chart above:
- The price remains below the parity level and the 200 day MA at the 1.0009 level. This keeps the longer term sellers content.
- The price is back below the 50% of the two plus month range at the 0.9955 level. Stay below this level, and the bias tilts toward the downside.
Targets include:
- The trend line support at the 0.9881
- The low from March 19th at 0.9859
- The low from March 1st at 0.9841
- A move below these levels opens the downside up and gets the pair outside the non trending range that has contained price action since the end of January.
Looking at the hourly chart below.
- The 100 and 200 hour MA (blue and green lines at 0.9941 and 0.9949) were breached. Aggressive sellers in the pair will look to sell against these levels today with stops above the midpoint on the daily chart (at 99.55).
- The 38.2% of the move down from the high comes in at the 0.9950 currently. This too should keep that area as a key intraday resistance level today.
