FxWirePro: USD/CAD intraday upside momentum strong after upbeat U.S. jobs data, outlook remains bullish

Friday, August 4, 2017 2:13 PM UTC

The USD/CAD pair rose higher on Friday as Canadian dollar was weighed down after data showed a jump in Canada's trade deficit, while a stronger-than-expected U.S. jobs gain boosted the greenback.
Canada's economy added 10,900 jobs in July, mostly in full-time employment, Statistics Canada said, while the jobless rate fell to its lowest level since October 2008.
But separate data showed Canada's trade deficit in June swelled to C$3.60 billion from a revised C$1.36 billion shortfall in May, with gold bullion leading the growth in imports.
The U.S. dollar rallied against a basket of major currencies after U.S. employers hired more workers than expected in July and raised their wages, signs of labor market tightness that is likely to clear the way for the Federal Reserve to announce a plan next month to start shrinking its massive bond portfolio.
The pair remains under bulls control unless until it trades above 1.2554 support level, therefore it is good to buy this pair on dips.
To the upside, the strong resistance can be seen at 1.2706, a break above will take the pair towards next resistance level at 1.2769.
To the downside immediate support can be seen at 1.2608 levels, a break below will open the door towards next level at 1.2554.

Resistance Levels

R1: 1.2660 (50% Retracement level)

R2: 1.2706 (38.2% Retracement level)

R3: 1.2769 (23.6% Retracement level)

Support Levels

S1: 1.2608 (61.8% Retracement level)

S2: 1.2554 (Daily lows)

S3: 1.2500 (Psychological levels)

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