USDCAD Outlook: Greenback Overpowers the Loonie in the Battle of Employment Data

Summary:

The USDCAD is trending upwards after the greenback overpowered the loonie in the battle of employment data across the borders.

The USDCAD is climbing this Friday following the joint release of the US and Canadian employment data.

Despite rising crude oil prices on the WTI benchmark, the loonie appears to have been outworked by the greenback on the day.

Canada’s employment data showed that the unemployment rate rose 0.1% over the previous month’s level, while that of the US remained static. Employment change decreased by nearly similar ratios when comparing the actual numbers and the consensus figures.

Perhaps, the improvement in the US’s unemployment rate has given the greenback the edge over the loonie.

Technical Outlook for USDCAD

Today’s upside move came via a bounce on the 1.26647 support, which is where the pair formed intraday lows earlier in the session. This leaves 1.27315 as the immediate upside target. 1.27831 and 1.28342 are targets that lie north of the immediate resistance at 1.27315.

On the flip side, a lack of follow-through buying or weakening of the greenback due to monetary and fiscal stimulus could spur a downside move towards 1.26219. This is where the pair found lows on 4 December 2017.