- USD/CAD trades neutral around 1.3500 amid cautious mood.
- The spot wavers in a potential symmetrical triangle pattern.
- In a Make or Break spot ahead of the key US/Canadian jobs report.
USD/CAD fluctuates between gains and losses around the 1.3500 mark so far this Friday, as a tug of war between the bulls and bears persists heading into the critical labor market reports from both the US and Canada due later today at 1230 GMT.
At the moment, the spot holds steady amid a broadly firmer US dollar, as the market mood turns cautious amid escalating US-China tensions and resurgence of new infections in the US cities.
On the CAD-side of the story, the minor weakness in oil prices remains a drag on the resource-linked Loonie. Meanwhile, the CAD buyers remain hopeful following the Bank of Canada’s (BOC) status-quo and its optimistic view on the economic recovery.
Moving on, the major is at ‘Make or Break’ position heading into the key economic releases, with a break on either side likely, as it now trades flat in a potential symmetrical pattern on the hourly chart.
The hourly Relative Strength Index (RSI) also remains neutral at the midline (50.0), suggesting a lack of clear directional bias in the near-term.
Should the macro updates prompt a bullish break above 1.3521, triggering a triangle breakout, the price could rally as high as 1.3594 (pattern target). However, the downward sloping 100-hourly Simple Moving Average (HMA) at 1.3551 could test the bulls’ commitment on the move higher.
On a symmetrical triangle breakdown below 1.3490, the floors will open up towards the downside target of 1.3420 amid a lack of healthy support levels.
All in all, for now, a neutral bias persists for USD/CAD and the US/Canadian jobs data could likely determine a decisive break in either direction.
USD/CAD: 1-hour chart
USD/CAD: Additional levels
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