Forex: USD/CAD soars higher to 1.0122/25 after Canadian unemployment

FXstreet.com (Barcelona) - The USD/CAD rebounded sharply off the 1.0065 level Friday, having recouped its immediate gains that were lost in the easing movement. During US trading and on the heels of the Canadian data release, the cross is now trading at session highs at 1.0122/25, up +0.54%.

According to the TD Securities Team, “technically, the market had a very strong close for USD/CAD yesterday – the market formed a bullish key reversal day, with the bounce occurring around important retracement support and amid very oversold conditions. This suggests an important short/medium-term low is in for the market now. We expect solid support on dips and more USD gains above 1.0100/50.”

In Canada, the Unemployment Rate (April) was reported at 7.2%, matching expectations of 7.2%. Moreover, the Net Change in Employment (April) yielded a figure of 12.5K, vs. a projection calling for 15.0K. Finally, the Participation rate (April) fell to 66.5%, against a consensus of 66.6%.

The Mataf.net Technical Analyst team points to resistances for the USD/CAD at 1.0106, onto 1.0137, and ultimately 1.0183. Conversely, a break below the 1.0029 handle will initiate support at 0.9983 and 0.9952.