The USD/CAD pair rallied initially during the day on Thursday again, but turned around to show signs of exhaustion. I believe that part of this may be due to the employment figures coming out of both countries today, and this is going to be one of the more interesting places to trade in the Forex markets today as far as I can tell. After all, this is a simple measurement of which country is doing better as far as jobs are concerned, and the market should follow. Keep in mind the Canada has 1/10 the population of the United States, so if Canada adds 30,000 jobs, it would be the same as the United States adding 300,000.
This is a market that I think could be very difficult to trade during the day but it seems as if the US dollar is trying to bounce overall. Oil has an effect as well, but I think it’s going to be all about the jobs during the day today. Right around 8:30 AM New York time, we should get the next directional move in this market. If we go higher, I think will go looking towards the 1.28 level. If we fall from here, I believe the 1.25 level will offer a bit of support, but eventually we will break down below there and go looking towards the 1.24 handle. Expect extreme volatility in this pair, as when these jobs numbers line up at the same time, this can be one of the most volatile currency pairs in the Forex world.
Written by FX Empire