USD/CAD: Key Support and Resistance Levels Ahead of Labor Market Data

Traders are closely watching the USD/CAD pair as labor market data from both the United States and Canada are set to be released today. Forecasts suggest a decline in Canadian employment change from 59k job openings to 24.9k job openings, accompanied by a rise in the unemployment rate from 6.8% to 6.9%. In contrast, U.S. non-farm payroll data is expected to show a decrease in job creation to 164k, while the unemployment rate is anticipated to remain steady at 4.2%. 

These data releases are likely to impact the USD/CAD pair's movements significantly. Analysts suggest that higher employment rates in either country would support their respective currency, while rising unemployment rates would have a negative impact on the currency involved. 

Technical outlook 

Beyond today's data, the USD/CAD pair is currently trading in a bearish trend on the 4-hour timeframe after recently hitting a new low at 1.43045. Analysts view the recent upward movement as a corrective rebound, with a return to the 1.44271 level potentially reinforcing the likelihood of a further decline toward 1.43195. 

On the other hand, if the pair continues its upward trajectory and breaches the 1.44670 level with a 4-hour candle closing above this level, experts predict the trend could shift to a bullish direction. 

Figure 1: USD/CAD, 4H, TradingView