“¢ A modest USD uptick helps reverse Friday’s post-NFP dip to 1-1/2 month lows.
“¢ Positive crude oil prices underpin Loonie and kept a lid on any further up-move.
The USD/CAD pair caught some bids at the start of a new trading week, albeit remained below Friday’s swing high level of 1.3040.
The pair turned lower and dropped to a fresh 1-1/2 month low in reaction to the disappointing headline NFP print, showing that the US economy added 157K new jobs in July. The negative reading, however, was largely negated by an upward revision job gains for May/June and in-line hourly wage growth data, which extended some support to the US Dollar.
Bullish traders once again showed resilience near 100-day SMA, with a follow-through USD uptick helping the pair to gain some positive traction on Monday. Meanwhile, positive crude oil prices, which tend to underpin demand for the commodity-linked currency – Loonie, kept a lid any meaningful up-move for the major, at least for the time being.
In absence of any major market moving economic releases, either from the US or Canada, the pair seems more likely to continue with its subdued price action and remain capped below mid-1.3000s.
Technical levels to watch
The 1.3040-50 region might continue to act as an immediate strong barrier, above which the pair is likely to make a fresh attempt towards reclaiming the 1.3100 handle. On the flip side, the 1.2975-70 region remains an immediate strong support to defend, which if broken might turn the pair vulnerable to slide further towards 1.2930-25 intermediate support en-route the 1.2900 handle.
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