USD/CAD Firmer, 1.2900 Around the Corner

USD/CAD Firmer, 1.2900 Around the Corner

6 May 2016, 08:50
Roberto Jacobs

USD/CAD Firmer, 1.2900 Around the Corner

The Canadian dollar is losing further ground vs. its American neighbor today, lifting USD/CAD to the vicinity of 1.2900 the figure, session tops.

USD/CAD higher on oil weakness

Spot is challenging multi-day tops as a renewed offered tone in crude oil prices is weighing on the Canadian dollar. The barrel of West Texas Intermediate is eroding part of yesterday’s gains and returned to sub-$44.00 levels, keeping CAD on the back foot.

Key day for the pair, as both US and CAD labour market figures are due later in the NA session. US Non-farm Payrolls is seen just above the 200K threshold in April, while Canadian Employment is expected to increase by a meager 1K during the same period.

USD/CAD significant levels

As of writing the pair is up 0.23% at 1.2883 and a breakout of 1.2986 (23.6% Fibo of 1.4692-1.2461) would aim for 1.2992 (high Apr.18) and then 1.3065 (55-day sma). On the flip side, the next support aligns at 1.2725 (20-day sma) followed by 1.2461 (2016 low May 3) and finally 1.2124 (monthly low Jun.24 2015).


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