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USDCAD : Surging After Downbeat Canadian Employment Data, Trend Still Seems Downtrend

(USDCAD : 4 Hour Chart)

USDCAD is surging in response to the Canadian job data released today at 8:30 AM EDT. On the 4 hour chart, the pair rose breaking the above the 50 day SMA and the previous resistance at 1.0676. The pair will find the next nearest resistance at 1.0693 which was also acting as resistance earlier. The 100 day SMA might also be act as resistance for the pair. Of the pair continue to surge and rise above the 100 day SMA, the next resistance would be at 1.0715 and if not the pair might now find support from the previous resistance at 1.0676. The moving averages are heading in the same downward direction giving signal that the pair will continue to follow downtrend. The flattening of 50 day SMA might provide some support to the pair.

Now let's look at the data which helped the pair in surging: 

"According to the data, the employment was little changed in June and the unemployment rate rose by .1%to 7.1%. Employment declined by 9400 in June which economists were expecting to increase by 20700.Compared with a year earlier, employment increased 72000 or .4%. This was the lowest reading for year over year growth rate since February 2010. In June there was a little change in the number of private and public sector employees as well as self employed. On the year over year basis, the overall growth was in the private sector employees."

(USDCAD : Daily Chart)

The downbeat employment data helped US dollar to find its way up but looking at the long term chart the trend on the pair still seems downtrend. On the daily chart, the 50 day SMA is contracting towards the 200 day SMA to cross below it and signaling that the pair will continue to move down.