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USDCAD Market Update

1/10/2023 1:24 PM

Macroeconomic statistics published last Friday in Canada contributed to the depreciation of the USD/CAD pair to the level of 1.3397.

According to Statistics Canada, in December the number of jobs increased by 104.0K, which is more than 10 times higher than analysts' forecast of 8.0K, as well as the previous value of 10.1K. At the same time, full employment rose by 84.5K, and partial employment — by 19.5K after a reduction of 40.6K in November. The unemployment rate fell to 5.0%, which turned out to be better than the projected 5.2%, as well as the previous value of 5.1%.

Investors did not expect such high indicators, as a result of which the long-term downward trend in the USD/CAD pair strengthened, and the support level of 1.3475 was broken down. The next sales target is 1.3251 near the November 2022 low. If this level is also broken down, then it will be possible to assume a further decline to the level of 1.2970.

The mid-term trend is still upward, but the price is trying to consolidate below the key support of 1.3450-1.3427. If the trading week is closed below this zone, the priority will change to a downward one, and the target for sales will be target zone 2 (1.3205–1.3182). If the price returns to levels above the key support during trading, then the growth is likely to continue with a target at the December highs around 1.3690.

Resistance levels: 1.3500, 1.3670. | Support levels: 1.3250, 1.2970.

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