The pair fell after data and hit new nearly six-weeks low at 1.2733 after US NFP disappointed at 103K in March, showing the lowest creation of jobs in six months, while unemployment rate remained unchanged at 4.1%, missing forecast at 4.0%. Negative impact was partially offset by earnings data coming in line with forecast (0.3%), up from Feb’s 0.1% which shows that pickup in wage gains helps tightening labor market. On the other side, Canadian jobs data showed strong rise in employment in March, with 32.3 K new jobs created, heavily beating forecast at 18.8K and previous month’s release at 15.4K. Divergence from US/Canada data helped loonie to extend gains against its US counterpart. The USDCAD pair is in near-term downtrend from 1.3124 (9 Mar high), currently riding on the third wave of five-wave sequence, which eyes its 76.4% Fibonacci expansion at 1.2706 (reinforced by 55SMA). Stronger bearish acceleration on persisting negative sentiment for greenback could extend to key supports at 1.2658/32 (top of rising daily cloud/FE 100%/200SMA). Daily MA’s (10/20/30) are in firm bearish setup and helped with negative momentum studies, favoring further weakness. However, immediate bears could be delayed for extended consolidation as slow stochastic is strongly oversold on daily chart, but without firmer bullish signal for now. Falling 10SMA tracks descend (currently at 1.2840) and should keep the upside protected.
Res: 1.2795; 1.2840; 1.2887; 1.2908
Sup: 1.2733; 1.2706; 1.2658; 1.2632
