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Today’s jobs data in Canada was good news for everyone. The unemployment rate was steady from last month at 6.4%, but below estimates of 6.5%. Employment data showed a -2.8K drop in jobs for the second straight month, but there were 61K full-time jobs and -64K part-time jobs. So the mix was good at least.
The mixed report is reflected in the price action.
In fact, since finding support on Wednesday, the USD/CAD pair has seen its share of ups and downs over the past two or so trading days this week. The range bottomed at 1.3719 (the low of the day and the low of the week) and then rose to 1.3765.
At the lows, the price moved below the support targets defined by the 61.8% retracement level and the 200-bar moving average on the 4-hour chart near 1.3724. Despite a number of looks below those technical levels, sellers have not stepped up buying to push the price lower (and towards the 100-day moving average at 1.3690). We are currently trading slightly above those technical levels, which keeps buyers in the game and sellers frustrated.
On the upside, the recent highs of the past few days have stalled near the 50% retracement level of the move up from the July low. The high of the past few days was 1.3765. The 50% retracement level is at 1.37669. PS now joins the 50% retracement level and the falling 100-hour moving average at the same level, increasing the importance of the area today and in the future.
As the clock ticks towards the end of the week and traders look forward to the new week, sellers are making some moves but so far, they don’t seem to have the ability to push lower.
This is good because it sets the stage for next week’s trading, and provides traders with some key levels to use as support and resistance. From these levels, traders can look for a breakout with momentum.
