Solid News
The USDCAD has Returned to a Decline
3/13/2023 11:45 AMDuring the Asian session, the USD/CAD pair is declining, retreating from local highs of October 17, renewed at the end of last week, and is testing 1.3725 for a downward breakdown, reacting to Friday's statistics on the US and Canadian labor markets.
The American report reflected the growth of nonfarm payrolls by 311.0K in February, although analysts expected an increase of only 205.0K, and in January, the figure rose by 504.0K. The unemployment rate increased from 3.4% to 3.6%, remaining close to the lows. The increase in average wages slowed down from 0.3% to 0.2%, and the figure accelerated from 4.4% to 4.6% YoY, while investors expected growth to 4.7%.
The Canadian report showed the number of employed in February at only 21.8K, which is more than seven times lower than the data for January at 150.0K, although the figure was better than expected at 10.0K. The unemployment rate remained around 5.0 % against expectations of 5.1%, and the average hourly wage increased by 5.4% after 4.5% a month earlier.
On the daily chart, Bollinger Bands are growing steadily: the price range is narrowing, reflecting a change in the direction of trading in the short term. The MACD reversed downwards, forming a new sell signal (the histogram is below the signal line). Stochastic is showing similar dynamics, retreating from its maximum values, signaling that the US dollar may become overbought in the ultra-short term.
Resistance levels: 1.3750, 1.3800, 1.3860, 1.3900. | Support levels: 1.3700, 1.3650, 1.3600, 1.3535.
