The Canadian employment data exceeded expectations, with an employment change of 34.7K compared to the estimated 12.0K. The unemployment rate dropped to 5.0%, better than the 5.1% prediction. Initially, the USDCAD dipped, reflecting a stronger Canadian dollar, but it later reversed and reached new session highs for the day, with the highest price at 1.35023 and currently trading around 1.3500.
Technically, the USDCAD has been fluctuating above and below the descending 100-hour moving average (depicted as the lower blue line in the chart). Yesterday, the highs encountered selling pressure near this moving average , indicating that sellers were still in control. During today's Asian session, the price broke above the 100-hour moving average but failed to maintain momentum. Since then, the price has been oscillating.
However, the recent upward movement suggests that buyers are attempting to gain control. If this momentum persists, the next critical resistance level will be at 1.35224, where the 100-day moving average currently lies. The descending 200-hour moving average, located at 1.35325, will also be a vital target for buyers to surpass in order to sustain the upward correction.
On the downside, a move back below the 100 hour MA would be needed to negate the bullish play today