FX.co ★ USD/CAD: reversal below 1.3682

The currency pair registered sharp movements in both directions around the US data publication. It's located at 1.3707at the time of writing and it seems undecided. Technically, the price action signaled exhausted buyers, but a downwards movement is far from being confirmed.

Fundamentally, the CAD could try to take full control as the Canadian Unemployment Rate remained at 5.5% even if the traders expected a potential growth to 5.6%, while Employment Change came in at 63.8K versus 22.1K expected.

On the other hand, the US NFP came in better than expected at 336K in September versus 171K expected and above 227K in August, but the Unemployment Rate remained at 3.8% even if the specialists expected a potential drop to 3.7%, while Average Hourly Earnings reported only a 0.2% growth versus the 0.3% expected.

USD/CAD Exhausted Buyers!

As you can see on the H1 chart, the rate is trapped between 1.3682 and 1.3727 levels. It has registered false breakouts with great separation above 1.3727 and below the R2 (1.3690) and now it stabilized above the minor uptrend line.

As long as it stays above 1.3682, the USD/CAD pair maintains a bullish bias and it could resume its growth despite the last retreat.

USD/CAD Outlook!

A bearish closure below 1.3682 is seen as a selling signal. This scenario opens the door for a larger drop.