- WTI’s bounce off 200-day SMA questions the pair buyers.
- The USD also take a break from the recent rally ahead of key employment data.
The USD/CAD pair is trading near 1.3470 during early Friday as buyers take a halt on check on recent WTI recovery. The pair broke short-term descending trend-line on Thursday as broad US Dollar (USD) strength joined WTI weakness.
Lack of immediate reaction to the US sanctions on Iran at the time of increasing US inventories dragged the energy benchmark to a four-week low.
However, failure to slip beneath 200-day simple moving average (SMA) triggered the black gold’s bounce in recent hours.
Other than crude’s pullback, caution ahead of today’s key employment data from the US also stopped bulls from making any further longs on the greenback.
April month jobs report might portray a slight pullback in the headline nonfarm payrolls (NFP) to 185K from 196K prior while registering an increase of 3.3% YoY of average hourly earnings from 3.2%. It should also be noted that the unemployment rate is bearing the no change consensus while holding 3.8% mark.
Technical Analysis
Given the break of a week old descending trend-line, the quote seems all set to revisit 1.3520/25 resistance area with 61.8% Fibonacci expansion (FE) of its March 19 to May 01 upside, around 1.3545/50, being follow-on level to watch.
Meanwhile, a downside break of 1.3450 resistance turned support can recall 1.3400 and 1.3375 on the chart. Also, 50-day SMA level of 1.3360 and 1.3345 figure indicating 100-day SMA might entertain sellers past-1.3375.
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