USD/CAD Forecast: Greenback Advances Against Loonie on Strong US and Weaker Canada’s Jobs Data

The pair rallied to one-week high at 1.3402 after US / Canada jobs data, but fresh bulls were so war unable to hold high levels Impact from stronger than expected NFP (Mar 196K vs 175K f/c / 20K Feb) was partially offset by slowdown in earnings growth (AHE Mar 0.1% m/m vs 0.2% f/c; y/y3.2% vs 3.4% f/c), while unemployment came in line with expectation and unchanged from previous month at 3.8%. on the other side, loonie was depressed by disappointing employment data which showed that Canada lost 7.2K jobs in Mar, compared to previous month’s creation of 55.9K new jobs, although March figure was better than expectation (-10K). The greenback may fall further after markets fully digest results, as upbeat jobs figure suggest that the US economy is performing well in the labor sector, while retreat in AHE growth cools down and suggests that Fed will remain sideways. Today’s post-data acceleration broke above daily cloud top (1.3366) following several unsuccessful attempts this week and generated further bullish signals on cracking pivotal barriers at 1.3391 /1.3400 (Fibo 61.8% of 1.3450/1.3296 bear-leg / psychological barrier) that require confirmation on close above these levels. That would open way towards key barriers at 1.3437 (Fibo 61.8% of larger 1.3664/1.3068 descend and 1.3450/67 (28 Mar / 7 Mar highs.). Bullish momentum and MA’s turning to positive setup on daily chart, support scenario. Only return and close below daily cloud top would soften the structure.

Res: 1.3402; 1.3437; 1.3450; 1.3467
Sup: 1.3366; 1.3348; 1.3336; 1.3317

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