USDCAD rebounds from jobs-driven plunge, sellers emerge at resistance

USDCAD has recovered 0.4% (55 pips) to 1.4280 after Friday's sharp 1.2% decline triggered by Canada's surprisingly strong employment data. The pair plummeted following Canada's second consecutive month of better-than-expected job gains, with employment rising by 51,000 positions against forecasts of 25,000. This robust labor market performance has shifted market sentiment, reducing expectations for aggressive Bank of Canada rate cuts. Technical indicators show the pair finding resistance near 1.4315 (38.2% Fibonacci retracement), with sellers actively defending this level. The 50-day moving average at 1.4290 is providing immediate resistance, while support lies at 1.4220 (Friday's low). Traders are closely monitoring whether this rebound represents a dead-cat bounce or the start of a more sustained recovery. The strength of Canadian employment data suggests further downside risks for USDCAD if US data disappoints this week.