The Canada jobs data had something for everyone today. The unemployment rate was steady vs. last month at 6.4%, but lower than the estimate of 6.5%. The employment data showed a decline of -2.8K for the 2nd consecutive month decline, but there was 61K of full time jobs but -64K of part time jobs. So the mix was at least good.
The mixed report is being reflected in the price action. In fact, since finding support on Wednesday, the USDCAD has had its share of up and down over the last 2 or so days of trading this week. The range at the bottom of the range, has been down to 1.3719 (the low today and low for the week) and up to 1.3765.
At the low the price did move below support targets defined by the 61.8% retracement and the 200 bar MA on the 4-hour chart near 1.3724. Although there has been a number of looks below those technical levels, the sellers have not piled-in to push the price lower (and toward its 100-day MA at 1.3690). We currently trade just above those technical levels keeping the buyers in play and the sellers frustrated..
On the topside, the high prices over the last few days stalled near the 50% retracement of the move up from the July low. The high for the last few days has reached 1.3765. The 50% is at 1.37669. PS joining the 50% is now the falling 100-hour MA at the same level increasing the areas importance today and going forward. .
So as the clock ticks toward the weekend and traders look toward the new week, the sellers are making a play but so far, they don’t seem to have the power to push lower.
That is ok as it sets up for next week’s trading, and provides traders with some key levels to use as support and resistance. From them, traders can look for a break with momentum.
This article was written by Greg Michalowski at www.forexlive.com.
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