The Canada jobs report is set for release at 8:30, with expectations pointing to an employment change of minus 5,000, down from last month’s increase of 66,600. The unemployment rate is forecast to rise slightly to 7.0% from 6.9%. Last month, full-time employment fell by 18,500 while part-time employment increased by 85,100. The participation rate was recorded at 65.3%.

Over the past eight days, traders have pushed the USDCAD lower, keeping the price below the 100-hour moving average. However, the downward move has stalled near the 50% retracement level of the rally from mid-September’s low, which stands at 1.39367. At present, USDCAD is trading around 1.3935, just ahead of the jobs report release.

To the upside, the 100-hour moving average and the resistance zone between 1.3968 and 1.3975 will be critical for bulls to surpass and maintain in order to retain control of the market. On the downside, the 100-day moving average at 1.3901 and the 200-day moving average at 1.3888 are key levels. A break below these would strengthen the bearish outlook.

A video accompanying the report provides further analysis of these key levels and explains the technical reasoning behind the current price action.

Original Source: Greg Michalowski of investinglive.com