USD/CAD Dips as the Loonie Breaks Out 

The dollar dipped against the Canadian dollar but returned to the 1.27 level. US benchmark yields moved lower following the jobs report, with the 10-year yield dropping five basis points to 1.7%. Palladium price jump 6.84% amid supply fears. Gold prices also moved higher in light of supply fears.

Technical Analysis

The USD/CAD moves lower against the Loonie. Support is seen near the 200-day moving average near 1.25. Resistance is seen near the downward sloping trend line near 1.275. Short-term momentum turned positive as the fast stochastic generated a crossover buy signal. The reading prints 53.10. 

Medium-term momentum turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD line (the 12-day moving average minus the 26-day moving average) converges to the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in negative territory with a downward sloping trajectory.

February Non-farm Payrolls Exceed Expectations

Non-farm payrolls surged 678,000 in February, and the unemployment rate dropped to 3.8%. Both readings beat expectations. Wall Street estimated that jobs would be 440,000 and 3.9%, respectively. Leisure and hospitality sectors led job gains, followed by healthcare and professional and business services.