USD/CAD drops to fresh multi-year lows post-US/Canadian employment details


  • USD/CAD witnessed some selling following the release of the US/Canadian jobs report.
  • US economy added 245K new jobs in November and the unemployment rate fell to 6.7%.
  • Stronger Canadian employment details underpinned the loonie and added to the selling bias.

The USD/CAD pair broke down of its intraday consolidative trading range and dropped to 1.2825-20 region, or the lowest level since October 2018 at the beginning of the New York session.

The latest leg of a sudden fall during the early North American session followed the release of monthly jobs report from the US and Canada. In fact, the headline NFP showed that the US economy added 245K new jobs in November, down from 610K previous (revised from 638K) and worse than 469K anticipated.

The disappointing reading, to some extent, was offset by a fall in the unemployment rate, which edged lower to 6.7% as against 6.8% expected and October's 6.9%. The data did little to provide any respite to the US dollar bulls, which remained depressed near two-and-a-half-year lows.

On the other hand, Canadian monthly employment details came in better-than-expected and showed that the economy created 62K new jobs in November. Adding to this, the unemployment rate unexpectedly dropped to 8.5% during the reported month, from 8.9% recorded in the previous month.

This comes on the back of the recent bullish run in crude oil prices, which provided an additional boost to the commodity-linked loonie. This, in turn, exerted some fresh downward pressure on the USD/CAD pair and might have already set the stage for an extension of the bearish trend.

Technical levels to watch

USD/CAD

Overview
Today last price 1.2859
Today Daily Change -0.0009
Today Daily Change % -0.07
Today daily open 1.2868
 
Trends
Daily SMA20 1.3033
Daily SMA50 1.3147
Daily SMA100 1.3203
Daily SMA200 1.352
 
Levels
Previous Daily High 1.2941
Previous Daily Low 1.2852
Previous Weekly High 1.3112
Previous Weekly Low 1.2972
Previous Monthly High 1.337
Previous Monthly Low 1.2923
Daily Fibonacci 38.2% 1.2886
Daily Fibonacci 61.8% 1.2907
Daily Pivot Point S1 1.2833
Daily Pivot Point S2 1.2798
Daily Pivot Point S3 1.2744
Daily Pivot Point R1 1.2922
Daily Pivot Point R2 1.2976
Daily Pivot Point R3 1.3011

 

 

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