“¢ Struggle to build on overnight uptick despite a combination of supporting factors.
“¢ The keenly watched NFP report and Canadian trade balance eyed for fresh impetus.
The USD/CAD pair struggled to build on overnight modest recovery and was seen oscillating in a narrow trading range, above the 1.30 psychological mark.
Resurgent US Dollar demand on Thursday, supported by the latest FOMC monetary policy update, reaffirming the gradual rate hike path, helped the pair to snap four consecutive days of losing streak and bounce off 100-day SMA support, or 1-1/2 month lows.
The uptick, however, lacked strong conviction, with a combination of supporting factors also doing little to provide any fresh bullish impetus on the last trading day of the week. After a brief pause, the USD regained positive traction but failed to attract any buying interest around the major.
Traders even shrugged off the prevalent negative tone around crude oil prices, which tend to undermine demand for the commodity-linked currency – Loonie, and now seemed to wait on the sideline ahead of today’s event risk – the release of US monthly jobs report.
Apart from the keenly watched NFP print, the Canadian trade balance data might also contribute towards infusing some volatility around the major and possibly help traders grab some meaningful trading opportunities.
Technical levels to watch
The 1.3040-50 region might continue to act as an immediate resistance, above which the pair is likely to aim back towards reclaiming the 1.3100 handle. On the flip side, weakness back below the 1.30 handle might continue to find support near the 1.2985 region (100-day SMA), which if broken now seems to open room for the resumption of the prior depreciating move.
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