On Friday 10th April at 08.30 ET, the Canadian Employment Report is released. This comprises the Employment Change (which was -1.0K previously and is forecast at -0.5K by some forecasters) and the Unemployment Rate (6.8% previously; forecast at 6.9% by some forecasters). This is likely to have a notable influence on the USDCAD direction Friday and potentially into next week.
USDCAD Bullish Bias on the Charts
Building on the robust, bullish outside Wednesday pattern rebound from strong foundations from February in the 1.2385/61/52 chart support area to push through 1.2576 resistance and maintain upside risks.
We see a further rebound bias Friday and into mid-April, into the broader range and for bigger picture upside pressures from the new cycle high posted in mid-March.
We see an upside bias for 1.2635/56; break here aims for maybe 1.2700/11, which we would look to try to cap.
But below 1.2568 aims for the 1.2506/02 chart support area, which we would look to try to hold.
Short/ Intermediate-term Outlook – Upside Risks
We aim back at the new cycle peak at 1.2835.
The April threat is to 1.3000, psychological/option target and even the 2009 cycle high at 1.3063.
What Changes This? Below 1.2406 eases bull risks; through 1.2352 signals a neutral tone, only shifting negative below 1.2313.