1. The USD/CAD pair faces an intense sell-off as Statistics Canada reports better-than-expected labor market data. The Canadian labor market saw new additions of 39.9 thousand payrolls in August, more than double the expectation of 15 thousand. In July, the decrease was 6.4K. The unemployment rate was unchanged at 5.5% while investors predicted a higher unemployment rate at 5.6%.
2.The average annual hourly wage increased to 5.2% from the previously announced rate of 5.0%. Reasonable wage growth can lift consumer spending incentives and maintain inflationary pressures. This could force the Bank of Canada (BoC) to raise interest rates again after pausing them in the past two policy meetings.
⚡️Technical analysis⚡️
- The price line is touching the strong resistance area of 1.36500, the relative strength index is in the overbought zone and is returning to the 50 level.
- If the price tests the EMA at 1.35000, it will create a double bottom pattern. Strong enough selling force will break this support zone, whereas stronger selling force will push the price up to continue the uptrend.
2.The average annual hourly wage increased to 5.2% from the previously announced rate of 5.0%. Reasonable wage growth can lift consumer spending incentives and maintain inflationary pressures. This could force the Bank of Canada (BoC) to raise interest rates again after pausing them in the past two policy meetings.
⚡️Technical analysis⚡️
- The price line is touching the strong resistance area of 1.36500, the relative strength index is in the overbought zone and is returning to the 50 level.
- If the price tests the EMA at 1.35000, it will create a double bottom pattern. Strong enough selling force will break this support zone, whereas stronger selling force will push the price up to continue the uptrend.
Trade active
Comment:
⚡️The pair experienced downward pressure despite the upbeat employment data for August from Canada on Friday.
Comment:
⚡️The plan is right, follow me
⚡️Additional details of the jobs report show Participation fell from 65.6% to 65.5%, while total hours worked increased 0.5% in August and 2.6% year-over-year