USD/CAD rebounds a bit of on the day after sellers failed to determine management
The loonie firmed after the discharge of the November month GDP knowledge in a single day however USD/CAD sellers failed to seek out sufficient conviction to determine a agency break beneath the 200-day MA (blue line) so as to acquire management of the pair and set up a extra bearish bias.
There’s additionally the 61.eight retracement degree @ 1.3120 that’s serving to to offer extra help for the pair and these two ranges can be a key battleground on the day as we gear in the direction of the US jobs report to come back at 1330 GMT.
Proper now, worth is inching again up in the direction of the highs for the day simply above 1.3150 with some near-term resistance seen round 1.3165 from yesterday’s excessive.
Provided that danger sentiment is trying fairly indecisive as soon as once more, I might count on worth motion to stay subdued between the 200-day MA and 1.3160 ranges earlier than we get additional clues after the US jobs report is launched.
It is often the case we’ll get Canadian labour market knowledge launched on the identical time however for this month, that may solely come about subsequent week. Therefore, the main focus right this moment can be on US payrolls so count on any directional break in USD/CAD to come back solely after the discharge of the figures there.
As talked about yesterday, the 200-day MA and the 1.3120 help degree are key by way of help so any break there may open up a transfer again in the direction of 1.3000 on the very least. As for upside ranges, patrons must first work their means in the direction of the 1.3200 deal with earlier than testing a cluster of key resistance ranges within the type of the 100-day MA (pink line) @ 1.3212 in addition to the 100-hour MA @ 1.3209.
These would be the key ranges to be careful for right this moment in any directional transfer later.