• The USDCAD is trading higher on employment data
• NFP beat expectations at +211k
• breakouts begin over 1.3425
The USD/CAD is trading higher this morning after US NFP (Non-Farm Payroll) employment figures came in slightly higher than expectations. Expectations for NFP were set at 200k, while the actual figure was released at +211k. NFP initially boosted the USD/CAD , but the move was also perpetuated by dismal CAD employment figures. CAD Net Change in Employment figures were released at -35k, which was considerably worse than the expected -10k.
Currently the USD/CAD is attempting to breakout out above today’s R4 which is found at a price of 1.3425. To close the week over this point would be significant as it would be considered the first breakout of the week. Traders looking for a trend continuation should also monitor sentiment for the pair. Currently, SSI data is showing the USD/CAD at an extreme -2.6. These figures when taken as a contrarian signal, may suggest that a is set to continue as traders attempt to pick a top in price.
In the event of a reversal, traders will look for price action to move back inside of today’s trading range which begins at the S3 . A move back to this point, at a price of 1.3403, would suggest at least a short term change in the current market conditions. In this scenario, traders may begin watching for the USD/CAD to return back towards values of support including the S3 at 1.3358.