USD/CAD jumped above 1.25, in a very fast move. It happened due to awful employment data from Canada. USD/CAD is now trading at 1.2511, after a jump of 100 pips immediately after the data was released.
Unemployment Rate jumped from 6.6% to 7.2%, exceeding expectations that stood at 6.8%. Bad news for Canada’s workers. Also Employment Change was devastating: a loss of 129,000 jobs, more than 3 times (!) than 40,000 that was expected. Awful news indeed.
In a technical view, 1.25 was both a psychological line, and a technical support / resistance line. USD/CAD “got stuck” above the line and below this line several times in the past few weeks.
The next resistance line for USD/CAD is 1.2760, which was the high point on January 21st. Looking further, 1.30 is a big stop for this pair. The loonie stopped there 3 times in the last months: On October 28th, November 21st and December 5th. It is also a very round number…
Of course, this uptrend course could reverse or get much stronger after the Non Farm Payrolls for January 2009 in the US are published, in about one hour from the time of writing..