USD/CAD drops to 100/200 MA as Canada jobs data surprises higher

USD/CAD has declined sharply following stronger-than-expected Canadian employment data, with the pair testing critical support at the convergence of 100 and 200-day moving averages. Canada's employment change surged to 53.6K, significantly exceeding forecasts, while the unemployment rate plummeted to 6.5% from 7.0%, marking the largest drop in recent months. The participation rate decreased to 65.1% from 65.3%, partially explaining the dramatic unemployment rate decline. This robust labor market data has strengthened the Canadian dollar and increased expectations that the Bank of Canada may pause its easing cycle. Technical indicators show the pair approaching a crucial support zone where the 100 and 200-day MAs converge, representing a key inflection point. A decisive break below this level could accelerate CAD gains and push USD/CAD toward the next support at 1.3950, while a bounce could see resistance at 1.4050.