USD/CAD having best day in months, rises back to 1.2400

• USD/CAD rally finds resistance at 1.2405.
• Spot having best day in months. 
• CAD lagging in the recover against US dollar. 

The USD/CAD pair was moving to the upside and jumped following the NFP report. The rally found resistance near the 1.2400 region. The US dollar lost momentum during the last hours but still USD/CAD remained near the lows, with the Canadian dollar becoming the worst performer of the US session. 

The pair pulled back to 1.2370 and near the end of the week rose back toward the highs and it was hovering around 1.2400, slightly below daily highs. 

The US dollar moved off lows but equity prices extended losses (Dow Jones -1.50%) and US bond yields remained close to daily highs. The reason behind those moves was the strong jobs report that increased the chances of more monetary policy tightening by the Fed. 

Crude oil prices drooped further after NFP. WTI bottomed at $64.45 a barrel, erasing yesterday’s gains. The slide in crude also contributed to the strong USD/CAD. 

USD/CAD Levels to watch

Price moved significantly away from the 4-month low it reached earlier during the week. The upside found resistance today at the 20-day moving average at 1.2405/10; above the recovery could extend to 1.2430 and 1.2480.

On the downside, a slide below 1.2350 could remove the bullish tone. The next support is seen at 1.2310; below that level, the January lows near 1.2245 would be exposed.