“¢ A modest USD pull-back fails to provide any fresh bullish impetus.
“¢ Weaker oil prices undermine Loonie and helped limit any downside.
“¢ Today’s key focus will be on US/Canadian monthly jobs report.
The USD/CAD pair now seems to have entered a bullish consolidation phase and was seen oscillating in a narrow trading band, around mid-1.3400s, or one-month tops.
The pair stalled/paused its recent upsurge – supported by disappointing Canadian GDP growth figures and cautious BoC statement, with a combination of diverging forces failing to provide any meaningful impetus and leading to a subdued/range-bound price action through the early European session on Friday.
After yesterday’s strong upsurge triggered by dovish ECB-led slump in the shared currency, the US Dollar bulls took some breather on the last trading day of the week and turned out to be one of the key factors keeping a lid on any follow-through up-move, rather failing to provide any fresh bullish impetus to the major.
However, the prevalent weaker tone surrounding crude oil prices – triggered by renewed global growth concerns following the release of disappointing Chinese trade data, undermined demand for the commodity-linked currency – Loonie and helped limit any meaningful corrective slide, at least for the time being.
Meanwhile, traders also seemed reluctant to place any aggressive bets and preferred to wait for today’s key releases – the closely watched monthly jobs report from the US – popularly known as NFP, and Canadian employment details, both due later during the early North-American session.
Technical levels to watch
Any subsequent up-move is likely to confront some stiff resistance near the key 1.3500 psychological mark, above which the pair is likely to accelerate the momentum further towards 1.3565-70 supply zone. On the flip side, any meaningful retracement now seems to find immediate support near the 1.3420-15 region and is closely followed by the 1.3400 handle, which if broken might prompt some additional long-unwinding trade and accelerate the slide further towards the 1.3370-60 support area.