USD/CAD Exchange Rate Prediction – The Dollar Eases Despite Strong JOLTS
The dollar consolidates after dropping sharply for two consecutive trading days versus the Loonie. The softness in the greenback comes despite a more robust than expected JOLTs report which showed that fewer people are quitting. Riskier assets gained traction on news that the Pfizer vaccine protects against the Omnicron variant.
The dollar traded higher after moving lower against the Loonie for two consecutive trading session. Resistance is former support near the 10-day moving average at 1.2744. Support is seen near the 50-day moving average at 1.2545. Short-term momentum has turned negative the fast stochastic generated a crossover sell signal. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram is printing in negative territory with a declining trajectory which points to lower prices.
JOLTS Data is Stronger than Expected
The JOLTS report showed that Job quitters declined by 4.7%, falling to 4.16 million from 4.36 million. The total number of job openings hit 11.03 million, an increase of 4.1% as the rate rose to 6.9% from 6.7%. In October, the number of openings exceeded those looking for jobs by 3.6 million. JOLTS data runs a month behind the more closely followed nonfarm payrolls report, which showed a gain of 546,000 for the month.