Canada’s Unemployment rate for April reported no change from March’s at 7.1 percent, despite estimates that the unemployment rate would increase to 7.2 percent. The labor force participation rate fell by 0.1 percentage points to 65.8 compared to the previous month. The employment rate also decreased by 0.1 percentage points, despite the unemployment rate passing unchanged. Full time employment decreased slightly from March, whereas part time employment increased. The USD/CAD was little changed after the release of the data – cinched between the simultaneous releases of the Canadian and US labor reports (DailyFx).
A few trading days later and USD/CAD has already erased the prior week’s decline. The support line that held was former channel resistance, which was also support one year ago. Focus is higher (Saettele, DailyFx). Valeria Bednarik, also believes that it could be a higher trend to 1.3070 for next week. Ismail (TradingView) said that USDCAD 16% higher from it's Fair Price, but still has power get higher next week, trading buy for next week is possible.
(USDCAD Buy Signal on Alpha Trend Spotter)
In other scenario Short-term descending trend-channel resistance can trigger USDCAD pullback (Panchal, FxStreet).
(USDCAD forecast by FxStreet)
(USDCAD Candle Pattern by Investing)
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