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FxWirePro: USD/CAD extends gains, faces 23.6% fib resistance

• USD/CAD held steady on Friday as strong US payrolls data reinforced expectations of a Fed pause in January.

• Nonfarm payrolls rose by 256K in December, far surpassing the 165K consensus.

• Wage growth eased to 0.3% m/m and 3.9% y/y, meeting forecasts. The unemployment rate dropped to 4.1%, below expectations, while participation held steady at 62.5%.

• The latest data reinforces expectations that the Fed will pause rate adjustments in January.

• At GMT 16:03, the pair was up 0.23% at 1.4428, marking its highest level since April 2020.

•  Immediate resistance is located at 1.4458(23.6%fib), any close above will push the pair towards 1.4499(Higher BB).

• Support is seen at 1.4346(38.2%fib) and break below could take the pair towards 1.4265(50%fib).

Recommendation: Good to buy  around 1.4410, with stop loss of 1.4050 and target price of 1.4500

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