Search ForexCrunch
  • USD/CAD follows dollar on US NFP day, Canadian jobs eyed.
  • CAD bulls regain control, as WTI looks to stabilize.
  • US-China woes could keep the bid tone intact around USD.

USD/CAD has receded sharply from the three-day highs of 1.3372, although trades with size-able gains in the European session.

The spot extends its two-day upbeat momentum, mainly driven by the solid bounce staged by the US dollar across its main peers, as the risk sentiment soured on escalating US-China tech war.

The US President Donald Trump’s signing the executive orders against the Chinese apps, TikTok and WeChat, sparked fresh tensions over the two countries and boosted the US currency at the expense of the riskier assets such as the CAD.

The major, however, stalled its advance and pared gains, as the USD bulls took a breather ahead of the critical US and Canadian labor market reports. Also, stabilizing WTI prices weighs on the pair, as it offers support to the resource-linked Canadian dollar.

Looking ahead, the major will continue to remain at the mercy of the US dollar price action and broader market sentiment of the jobs data.

USD/CAD technical levels

To the upside, the spot could retest the multi-day highs at 1.3372, above which the 1.3400 level could be put to test. On the flip side, 5-DMA at 1.3326 will be the immediate cushion. The next downside target is seen at 1.3300 (round figure).

USD/CAD additional levels