The horrible US NFP, showing a gain of only 38K job gains and other disappointing data hit the USD quite hard.
USD/CAD dropped sharply and hit a double bottom at 1.2910, the previous swing low seen in mid-May. What’s next?
The Canadian dollar forgot about the no-decision by OPEC and the failure of WTI Crude Oil to top $50 and the USD is now in the driver’s seat, and to the downside.
Further support awaits at 1.2830, which worked as support in May. Much stronger support awaits at 1.2750, which was a clear separator of ranges.
Below this line, we have levels that were visited only for short period of time: 1.2630 worked as support in April and the round 1.25 also cushioned the pair around the same time.
On the topside we have the very round 1.30 as resistance followed by 1.3170 and 1.3220.
Here is the daily chart of Dollar/CAD: not the big drop after long days of slow motion moves in this pair and in many others.
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