• USD/CAD traded in narrow range on Thursday as investors digested mixed U.S. labor market data to assess the extent of U.S. interest rate cut later this month.
• The U.S. Department of Labor report revealed a drop in jobless claims for the previous week, attributed to fewer layoffs .
• Separately, U.S. private payrolls saw the smallest increase since January 2021 in August, with the data for the previous month revised downward.
•The focus will remain on Friday's U.S. nonfarm payrolls data, which could offer a clearer picture of the pace and extent of future Federal Reserve interest rate cuts.
• Immediate resistance is located at 1.3563(50%fib), any close above will push the pair towards 1.3615(61.8%fib).
• Support is seen at 1.3497(38.2%fib) and break below could take the pair towards 1.3426( (23.6%fib).
Recommendation: Good to sell around 1.3520, with stop loss of 1.3600 and target price of 1.3460
