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USDCAD Marked Update
4/7/2023 1:02 PMAgainst the stabilization of the American currency, the USD/CAD pair is correcting around 1.3487.
The Canadian dollar received significant support after the publication of yesterday's report on the labor market for March: the unemployment rate remained at 5.0%, better than forecasts suggesting an increase to 5.1%, provided by an increase in employment by 34.7K instead of the expected 12.0K. Full employment rose by 18.8K against the estimated reduction of 5.0K, and the share of the economically active population adjusted to 65.6% instead of 65.7%, although analysts had expected a decline to 65.5%. Thus, the Canadian economy received an additional positive impetus.
The US dollar ends the week without a pronounced dynamic, remaining at 101.600 in the USD Index. Yesterday's report on the labor market disappointed investors, as initial jobless claims amounted to 228.0K instead of the expected 200.0K, the total claims rose to 1.823M from 1.817M a week earlier, and the four-week average rose to 237.75K, higher than the forecast of 196.50K.
On the daily chart, the trading instrument approaches the support line of the global sideways corridor of 1.3230–1.3870.
Technical indicators have given a new sell signal: the range of EMA fluctuations on the Alligator indicator expands downwards, and the AO histogram forms corrective bars, falling in the sell zone.
Resistance levels: 1.3570, 1.3740. | Support levels: 1.3400, 1.3230.