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  • Doubts over the US-China trade deal remains in the spotlight.
  • Geopolitical tensions between the US and Iran persist.
  • The USD trims post-NFP gains but WTI pullback limits the USD/CAD moves.

The USD/CAD pair fails to garner much of the market attention after Friday’s notable surge as it clings to 1.3075 during early Monday.

The US Dollar (USD) registered across the board rally after the US Nonfarm Payrolls (NFP) took immediate bearish bias off the US Federal Reserve.

However, the US President Donald Trump continues to criticize the US Fed’s monetary policy and offers challenges to the Fed Chair Jerome Powel when he’ll appear for testimony on Tuesday.

Canadian Dollar (CAD) also takes cues from Crude due to the nation’s heavy reliance on the commodity for export-earnings. The energy benchmark remains under pressure off-late despite the US-Iran geopolitical tension as doubts over the trade truce between the US and China keep weighing on market sentiment.

Given the lack of major data/events up for release on the economic calendar, investors will closely follow trade/political news for fresh impulse.

Technical Analysis

The 18-day long descending trend-line, at 1.3120, acts as immediate resistance for the pair whereas 1.3150 and June 10 low near 1.3242 may limit the quote’s further upside.

Alternatively, the current month low near 1.3038 and 1.3000 round-figure become a strong support to watch ahead of observing late-October bottom surrounding 1.2970 during the pair’s additional declines.