Canada’s jobs report was a positive one, showing that 42.9K jobs were added in March. This reading rebounded from the -7.0K reading in February, and beat forecast of around 21.5K. The unemployment rate was also reduced from 7.0% to 6.9%. The historic graph shows the declining trend in unemployment since late 2009.
The data was CAD-positive.
USD/CAD fell below this week’s range, and tagged a previous support pivot at 1.0955. The next support pivot is 1.0910. The US NFP data was decent, but did not pack the punch the CAN data had.
The USD/CAD has shifted from bullish to neutral, and if the current decline can extend below 1.09, it would shift into bearish mode.
The CAD/JPY has been in a bullish development. The 4H chart shows a bounce from 90.65 that broke above the March high around 94.10, and formed a 2-month price bottom. Today’s price action extends the breakout closer to the 95.00 handle, and we do see some resistance at hand. While the CAD/JPY looks bullish, it also looks like it is due for a correction or consolidation before it can extend higher.
Price bottom as support:
The 2-month price bottom should serve as a general area of support. We can see a “central pivot in the 92.20-92.30 area, and a bullish market should not keep the market above this area in the bearish correction scenario.
Fan Yang, CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes.
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