USD/CAD jumped above 1.25, in a very fast move. It happened due to awful employment data from Canada. USD/CAD is now trading at 1.2511, after a jump of 100 pips immediately after the data was released.
Unemployment Rate jumped from 6.6% to 7.2%, exceeding expectations that stood at 6.8%. Bad news for Canada’s workers. Also Employment Change was devastating: a loss of 129,000 jobs, more than 3 times (!) than 40,000 that was expected. Awful news indeed.Â
In a technical view, 1.25 was both a psychological line, and a technical support / resistance line. USD/CAD “got stuck†above the line and below this line several times in the past few weeks.
The next resistance line for USD/CAD is 1.2760, which was the high point on January 21st. Looking further, 1.30 is a big stop for this pair. The loonie stopped there 3 times in the last months: On October 28th, November 21st and December 5th. It is also a very round number…
Of course, this uptrend course could reverse or get much stronger after the Non Farm Payrolls for January 2009 Â in the US are published, in about one hour from the time of writing..
