• US job growth jumped in December, with the economy adding 256,000 jobs.

• The US unemployment rate eased to 4.1%.

• Canada’s economy added 90,900 jobs compared to forecasts of 24,900.

The USD/CAD forecast shows a slightly bullish bias as traders balance the upbeat employment reports from Canada and the US. The pair rose on Friday as US job growth beat estimates. However, a surge in Canada’s employment put a lid on further gains.

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Data on Friday revealed that US job growth jumped in December, with the economy adding 256,000 jobs. This number was much more significant than the forecast of 164,000. At the same time, the unemployment rate eased to 4.1%, compared to estimates of 4.2%.

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The report indicated a resilient labor market, leading to a decline in Fed rate cut expectations. Given the robust economy, markets are gradually pricing out rate cuts this year. At the same time, Trump’s presidency might further boost demand. Consequently, the dollar soared against most of its peers. 

However, the Canadian dollar was an outlier since data from Canada also showed a resilient labor market. According to figures, the economy added 90,900 jobs compared to forecasts of 24,900. Meanwhile, the unemployment rate fell to 6.7%, missing estimates of 6.9%. The upbeat figures have eased pressure on the Bank of Canada to lower rates, boosting the loonie.

USD/CAD key events today

Market participants do not expect any high-impact reports today. Therefore, they will keep digesting Friday’s employment figures.

USD/CAD technical forecast: Bulls looking at 1.4450 resistance

On the technical side, the USD/CAD price is in a holding pattern between the 1.4300 support and the 1.4450 resistance level. The price trades above the 30-SMA within the range, showing bulls are in the lead. At the same time, the RSI trades above 50 in bullish territory. Therefore, there is a high chance USD/CAD will make another attempt at the range resistance. 

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Before the price started consolidating, it was in a bullish trend, trading above the 30-SMA. However, bulls failed to breach the 1.4450 resistance level, and momentum faded. As a result, the price formed a corrective move. 

If this allowed bulls to recover, USD/CAD will soon breach the range resistance to continue the uptrend. On the other hand, if bears become stronger, the trend might reverse to the downside. 

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