As the dust settles after the jobs reports in the US and Canada, the USDCAD is higher.

Technical Analysis

Both the US and Canadian jobs report will released today. In the US, the market is breathing a little sigh of relief in that the numbers weren’t as weak as last month. The unemployment rate did tick down to 4.2% from 4.3%. In Canada, the unemployment rate moved higher 26.6% which was a highest level sans the Covid period between 2020 and 2021 (the highest level since 2017). With the Bank of Canada already cutting rates, it continues to support that trend (and may have some people wondering whether they should have done 50 basis points given the unemployment rate rise).

Looking at the hourly chart, the price action has seen a move lower and a snapback move to the upside. The price is currently back above its 200 and 100-hour moving averages at 1.34945 and 1.35165 respectively. Staying above those levels would have traders looking toward the falling 100-hour moving average of 1.3553. The price has not been above that moving average since August 7 nearly one month ago since and the price has move down from 1.37842 a low price reached last week at 1.34396.

A move above the 100 bar moving average on the four hour chart would then have traders looking toward the key 200 day moving average of 1.35879.

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