USD/CAD Nosedives After US Employment Data

The US Dollar (USD) fell broadly against the Canadian Dollar (USD) on Thursday, decreasing the price of USD/CAD to less than 1.3350 following some key economic news. The technical bias remains bullish because of a higher high in the recent upside move.

Technical Analysis

As of this writing, the pair is being traded around 1.3315. A support may be seen near 1.3282, the 50% fib level support area as demonstrated in the given daily chart. A break and daily closing below the 1.3282 support shall incite renewed selling interest, validating a move towards the 1.3067 support which is another critical zone.

On the upside, a hurdle can be seen near 1.3527, the trendline resistance area as marked with brown color in the given above daily chart. A break and daily closing above the 1.3527 resistance shall trigger fresh buying pressure, opening door for a move towards the 1.3600 resistance, the high of 28th December, 2016 as marked with red color in our chart. The technical bias shall remain bullish as long as the 1.3067 support zone is intact.

US Jobless Claims

US initial jobless claims declined slightly to 241,000 in the week ending March 11th from 243,000 the previous week and the latest figure was very close to consensus forecasts of 240,000. The four-week moving average rose slightly to 237,250 from 236,500 the previous week. Claims have remained below the 300,000 level for 106 weeks with sustained labour-market strength a key feature with a figure below 250,000 for the past seven weeks which suggests a very low rate of lay-offs.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.

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