Key Points
- The US Dollar was seen under a bearish pressure against the Canadian dollar starting from 1.3212.
- The USDCAD pair is moving down, and following a bearish trend line on the hourly chart with resistance at 1.3120.
- Recently, the Canadian employment Change report was released by the Statistics Canada.
- The result was above the forecast, as the change was 48.3K in Jan 2017, compared with the 0.0K forecast.
USDCAD Technical Analysis
The Canadian dollar started gaining traction after the positive employment figures for Jan 2017. The USDCAD started moving down after facing resistance near 1.3210 and moved below 1.3150. The USDCAD is currently under pressure, and following a bearish trend line on the hourly chart with resistance at 1.3120.
The pair at the moment finding bids near 50% fib retracement level of the last wave from the 1.2992 low to 1.3212 high.
So, there is a chance of a minor bounce back, but the pair may face resistance near the 21 hourly simple moving average at 1.3110, and the highlighted bearish trend line at 1.3120.
Canadian Employment Change
Recently in Canada, there was a major release, as the employment Change report released by the Statistics Canada. The market was expecting no change in Jan 2017, compared with the previous reading of 53.7K (now revised to 46.1K).
However, the result was above the forecast, as the change was 48.3K in Jan 2017. The report added that “Employment rose by 48,000 (+0.3%) in January, building on gains observed in the latter part of 2016. The unemployment rate fell by 0.1 percentage points to 6.8%. On a year-over-year basis, employment rose by 276,000 (+1.5%), with most of the increase occurring from August to January”.
Overall, the Canadian dollar traded with a positive tone after the release, and the USDCAD pair is likely to fall further towards 1.3050.
