• USD/CAD rose slightly on Thursday as investors awaited Friday’s key nonfarm payrolls report, which could provide insight into the U.S. labor market and future interest rate moves.
• Thursday’s data showed U.S. weekly unemployment claims rose moderately last week, despite layoffs remaining relatively low.
• U.S. job openings fell more than expected in November while hiring eased, according to a Labor Department report on Wednesday..
• Traders expect at least two Federal Reserve rate cuts this year, despite the central bank signaling in December that only one cut is likely in 2026.
• The Fed is expected to hold interest rates steady at this month’s meeting, with Jerome Powell’s term as chair ends in May.
• Immediate resistance is located at 1.3887 (50%fib), any close above will push the pair towards 1.3923(Higher BB).
• Support is seen at 1.3782(38.2%fib) and break below could take the pair towards 13761(SMA 20).
Recommendation: Good to buy around 1.3840, with stop loss of 1.3760 and target price of 1.3900
