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  • The USD/CAD pair dropped to fresh nine-month lows on Thursday, albeit now seemed to have found some support ahead of mid-1.3000s.
  • The mentioned support nears Nov. 2018 swing lows and should now act as a key pivotal point for the next leg of a directional move.

Given the recent bearish break below important confluence support – comprising of the very important 200-day SMA and 5-1/2-month-old ascending trend-line, bearish traders are likely to maintain their dominant position.

However, technical indicators on the daily chart have moved on the verge of falling into the oversold territory, which might eventually turn out to be the only factor holding investors from placing any aggressive bearish bets.

Sustained weakness below the mentioned support will confirm a fresh near-term bearish breakdown, though traders are likely to wait for Friday’s important releases of monthly jobs report from Canada and NFP from the US.  

A follow-through selling now seems to turn the pair vulnerable to accelerate the slide further towards challenging the key 1.30 psychological mark before the bearish momentum gets extended further towards the 1.2970-65 region.

On the flip side, attempted recoveries might now confront immediate resistance near the 1.3100 round figure mark and any subsequent up-move seems more likely to remain capped near weekly tops, around the 1.3140-45 supply zone.

USD/CAD daily chart