Headline: USD/CAD Slides on Strong Canada Jobs Data; 1.4000 Level Holds the Spotlight
A stronger-than-expected Canadian labor report jolted the forex market, pushing the USD/CAD exchange rate lower and putting key technical levels back into play. Traders are re-evaluating risk after the data-driven move, with the Canadian dollar gaining momentum and the 1.4000 psychological level emerging as the near-term battleground.
On Friday, employment in Canada surged by 66.6K versus an expected decline, while the unemployment rate eased to 6.9% from 7.1%. That surprise lifted the loonie and knocked USD/CAD down toward its 200-hour moving average, where the pair hovered into the close following profit-taking near 1.4038, below last week’s high around 1.4140. Early Monday in Asia, a brief rebound faltered, sending the pair back under the 200-hour MA and through the 50% retracement of the October–November advance at 1.40135, before dip buyers stepped in around the 1.4000 handle.
The 1.4000 level is now pivotal for near-term direction. A decisive break beneath it would strengthen the bearish bias and open the door to the next support band at 1.3968–1.3975. Holding above 1.4000 keeps USD/CAD in consolidation, with the 200-hour moving average near 1.4043 acting as the immediate pivot for trend confirmation. Short-term traders will watch price action around these levels for signals on momentum and sentiment in the Canadian dollar.
Key Points – USD/CAD fell after Canada added 66.6K jobs and the jobless rate slipped to 6.9%. – The pair tested and slipped below the 200-hour moving average before stabilizing. – Price dipped through the 50% retracement at 1.40135, then found support near 1.4000. – A clean break below 1.4000 targets 1.3968–1.3975 as the next support zone. – Staying above 1.4000 keeps consolidation in play, with 1.4043 as the near-term pivot. – Market focus remains on technical levels and momentum following the data surprise.
