The USDCAD pair is consolidating above fresh low at 1.2061 posted earlier today (the lowest since mid-May 2015) after six straight days in red. The pair traded in a choppy mode around 1.2100 handle after release of Canada’s jobs data for August. Unemployment dropped to 6.2% in August, hitting 9-year low, vs 6.3% forecast as economy added more jobs than expected. Employment change showed 22.2K new jobs created in August, against forecasted increase by 19K and well above 10.9K seen last month. Another upbeat figure came from part-time jobs which showed 110.4K part-time jobs added last month, but overall picture was soured by fall of 88.1K full-time jobs in August. Mixed jobs report kept Loonie in directionless near-term mode after it registered strong gains of over 2.5% against the dollar since the beginning of the week, but without firmer correction signal so far, despite strongly oversold daily studies. However, the pair may show stronger hesitation ahead of targets at 1.2046 (50% retracement of larger 0.9405/1.4688 rally) and psychological 1.2000 support. Bearish divergence on daily RSI and MACD supports scenario of corrective rally in the near term, but limited upside is seen as the greenback remains under strong pressure and may fall further if geopolitical situation over North Korea deteriorates during the weekend.
Res: 1.2141; 1.2200; 1.2240; 1.2300
Sup: 1.2061; 1.2046; 1.2000; 1.1910
