USD/CAD Tries to Defend Familiar Support
Friday's Jobs Report
The headline print of +199K employment positions in the US for December was disappointing, but the rest of the Jobs report was solid as unemployment continued to decline, participation rate inched up slightly and wage inflation picked up.
Canada also released its employment figures on Friday, which showed the addition of 54.7K jobs last month – better than forecasted, but much lower than November's blowout print (+153.7K). Unemployment retreated to 5.9%, from 6% prior.
USD/CAD Reaction
The pair reacted lower on the results, registering its second straight losing day, in an overall inconclusive week. The new one started on the back foot, but it bounces off key support as we head towards the US session and sentiment deteriorates.
Bears tested the familiar 1.2626-05 area but this this triggered a bounce, same way it had done in early December and late and at the turn of the year as well. Along with the slide in oil prices and oversold conditions pointed by the Stochastic, USD/CAD may be able to push for the EMA200 (at around 1.2730), above which the downside bias will ease.
The upside however has multiple roadblocks and a sustained recovery beyond 1.2500 may prove more difficult, while last year's highs (1.2965) are distant at this point.
The aforementioned 1.2626-05 region that provides support for now, may prove critical, since it contains the 200Days EMA and the 50% Fibonacci of the "October Low/December High" rise. As this is being tested by sellers, the pair is vulnerable to 1.2526-1.2492, but it is probably early for a breach of 1.2287.
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.