USD/CAD turns higher and reaches fresh 7-month highs

USD/CAD reversed early losses and climbed to fresh 7-month highs, after the knee-jerk reaction to US and Canadian jobs data.

USD/CAD fell to a low of 1.3185 during the first minutes that followed the released but the managed to recover, overshooting previous highs and climbing to its highest since mid-March at 1.3313. At time of writing, the pair is trading at 1.3294, recording a 0.58% gain on the day.

Data showed US economy added 156,000 new jobs in September, the smallest gain since May, and missing expectations of a 175,000 increase. Meanwhile, the unemployment rate unexpectedly rose to 5.0% from 4.9% the previous month.

On the Canadian side, Employment Change increased by more than 67,000 jobs, surpassing consensus, while the unemployment rate stayed put at 7.0%.

USD/CAD levels to watch

In terms of technical levels, next resistances are seen at 1.3400/04 (psychological level/Mar16 high), 1.3445 (Mar 9 high) and 1.3500 (psychological level). On the other hand, supports are seen at 1.3210 (200-day SMA), 1.3176 (10-day SMA) and 1.3109 (Oct 4 low).