FXstreet.com (Barcelona) - After it found support at 1.2700 level, new two weeks low, the USD/CAD has risen around 140 pips to break the 1.2800 resistance and go up to the 1.2845 on worse than expected February unemployment Canadian data.
Unemployment has climbed up to the 7.7% from 7.2% between january and February, worse than 7.4% expected by market. it has been the highest unemployment level since 2003.
The USD/CAD has been trading between a 1.2760/1.2805 flat channel since the beginning of the Asian session after falls around 180 pips from the 1.2946 to the 1.2765 in the yesterday's American session. At the beginning of the European morning, the USD/CAD has been rejected by the 1.2805 resistance and the pair has fallen to break the 1.2760 and reach go down below the 1.2700 level. Then, the pair has risen around 140 pips.
Currently, the pair is trading above the 1.2800 level, on the uptrend land, the pair must think on the 1.2850 before of the 1.2870. On the downside, with the USD/CAD below the 1.2800, it will go down to test the 1.2760 support and 1,2700, below there, the 1.2590 will be exposed.
According to Valeria Bednarik, FXstreet.com Collaborator, The USD/CAD continues moving in last days range, yet tending higher: Canada printed the highest unemployment level since 2003 that rose to 7.7% while the number of jobs lost reached a high as 82,6K. The USD/CAD continues moving in last days range, yet tending higher. Long term perspective however remains uncertain to the upside, as long as the pair remains under the 1.3000 key level, that already tested yet failed to break this month. Clear confirmations above that point, will bring more losses for this small dollar, supported also by the downturn in the economic conditions of the country. Canada expects further deterioration in labor, and construction conditions for the next months.