USD/CAD plunges to 1.3000 neighborhood on disappointing NFP print

Following the release of lower-than-expected headline NFP print, the USD/CAD pair dropped back below 200-day SMA and plunged to 1.3017 level. 

The US August non-farm payrolls came-in to show an addition of 151K new jobs, lower than 180K expected and an upwardly revised 275K recorded in July, while the unemployment rate held steady at 4.9% as compared a consensus estimates of a down-tick to 4.8%. 

Meanwhile, data released from Canada showed labor productivity declined by 0.3% in Q2 2016, which was slightly better-than-expected decline of 0.4%. Also, the Canadian monthly trade deficit came-in at 2.49 billion, again better-than a deficit of 3.25 billion expected. 

The combination of weaker US employment details and better-than-expected Canadian data helped to pair to break through the recent trading range. 

Technical levels to watch

From current levels, 1.3000 psychological mark seems to protect immediate downside below which the pair is likely to continue drifting lower towards 100-day SMA strong support near 1.2935 region. On the flip side, 200-day SMA near 1.3065 region now become immediate resistance, which if cleared should negate any further bearish bias and help the pair to reclaim 1.3100 handle and aim towards testing multi-week highs resistance near 1.3145-50 region.