FxWirePro: USD/CAD recovers slightly from early decline but bears are not done yet

• USD/CAD   recovered  some ground on Wednesday as stronger-than-expected U.S. jobs data reduced expectations for Federal Reserve interest rate cuts, offsetting higher oil prices.as.

• U.S. job growth unexpectedly accelerated in January, while the unemployment rate declined to 4.3%, signaling continued labor market resilience..

• The solid employment data could give the Federal Reserve scope to keep interest rates unchanged for the time being as policymakers assess the inflation outlook..

• Labor Department data showed nonfarm payrolls increased by 130,000 in January, surpassing forecasts for a 70,000 gain, although job figures for both November and December were slightly revised lower.

• The price of oil, one of Canada’s key exports, settled 1.05% higher at $64.63 per barrel, supported by investor concerns over escalating tensions between the United States and Iran, which raised fears of potential supply disruptions.

•  Immediate resistance is located at 1.3616(Daily high), any close above will push the pair towards 1.3699(38.2%fib).

• Support is seen at 1.3487(23.6%fib) and break below could take the pair towards 1.3448(Lower BB).

Recommendation: Good to sell   around 1.3590, with stop loss of 1.3640 and target price of 1.3500