USD/CAD Prop-Up to Trade Flat at 1.3100 ahead of US Jobs Report

USD/CAD Prop-Up to Trade Flat at 1.3100 ahead of US Jobs Report

3 June 2016, 12:23
Roberto Jacobs
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USD/CAD Prop-Up to Trade Flat at 1.3100 ahead of US Jobs Report

The USD/CAD pair was well supported around 10-day SMA near 1.3075 and propped to 1.3100 handle but still remained in a narrow band as traders await for fresh impetus from US monthly jobs report.

This week, the pair has risen steadily as oil prices have stagnated its bullish momentum below the much talked about, $50.00/barrel psychological mark. 

Moreover, market participants also seem to have adopted a cautious stance ahead of the official monthly jobs report from the US that would determine whether the Fed will make a move on interest-rates in June or not. 

From a technical perspective, the pair continues to trade above short-term moving averages (10, 20 & 50-day SMAs), suggesting that the near-term up-move could get extended in the near-term.

Technical levels to watch

On a sustained strength above 1.3100 handle, the pair seems to aim towards retesting 7-week high resistance near 1.3180-85 area, above which the bullish momentum could get extended towards late March highs resistance near 1.3260-80 region.

Conversely, weakness below 10-day SMA support near 1.3070 seems to find support at 20-day SMA near 1.3015-10 region. A decisive break below 1.3000 handle now seems to accelerate the fall further towards 50-day SMA support near 1.2900 region.


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