USDCAD trades to new session lows

USDCAD looks to test the next target swing area

The Canada jobs report was once again solid. The US jobs report was also solid but with lower NFP jobs added.

The USDCAD move lower and then back higher after the report, but has rotated back to the downside on the US dollar weakness. Helping the bias was the inability to get back above its 100 hour moving average 1.27319 (blue line in the chart above). Falling below swing levels of 1.27044 and 1.26901 has also helped the bearish bias.

The next target comes in at the swing low from Tuesday’s trade at 1.2666. That level was also a corrective low from Monday’s trade. Move below would have traders looking toward the low extremes from last week in December, along with the 100 day moving average currently at 1.26246. A higher swing area comes between 1.2633 and 1.26395.

On the topside it will take a move back above 1.2690 followed by 1.27044 to hurt the more bearish bias.

In other markets,

  • The NASDAQ index is now down -1.24% at 14894.10. The low price came in at 14877.63. The 14860.04 was a swing low going back to December 20. A move below would target the 200 day moving average at 14681.21.
  • In the US debt market, the 10 year yield is up to 1.780% and has now moved above the 2021 high yield of 1.774%. The yield is at the highest level since January 2020.
  • The two year yield reached its cycle high of 0.908%. That’s the highest level since March 2020.
  • The German 10 year yield has moved to a high of -0.031%. The yield has not been above 0.0% since May 2019.

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