USD/CAD capped by 1.2840, another test of 1.2800 coming?
- Rebound from 1.2800 limited by the 1.2840 resistance.
- Pair consolidating, still near the 1.2800 low.
On a quiet day, USD/CAD is moving slowly to the downside on the back of a decline of the US dollar across the board. The US Dollar Index dropped below previous lows and fell to 89.80, reaching the lowest since last Thursday.
USD/CAD found support at 1.2800 earlier today. It rebounded and the upside was capped by the 1.2840 area. As of writing, it was trading at 1.2825/30, practically unchanged for the day.
The pair is consolidating after falling on Thursday and Friday. The slide so far stopped at 1.2800 and the rebounded has been limited. USD/CAD holds a bearish tone in the short-term. A break below 1.2800 could favor more losses. To the upside, a recovery above 1.2875 would remove the current bias and favor a more sustain up-move for the greenback.
The loonie is on Monday the worst performer among commodity currencies amid a slide in crude oil and also still affected by Friday’s Canadian jobs data. Employment rose by 15K in February, slightly below the 20K expected, but full-time jobs declined sharply and the positive headline number was due to part-timers.
The next round of economic numbers that could impact the pair will be released on Tuesday with US CPI data.
USD/CAD Technical levels
To the downside, support levels might be located at 1.2800 (psychological/daily low), 1.2760 (Feb 28 low) and 1.2725 (Feb 23 high). On the upside, resistances are seen at 1.2840/45 (daily high), 1.2865 (Mar 6 & 8 low) and 1.2905 (Mar 9 high).