USD/CAD (current price: 1.3045)
The Canadian Dollar retreated significantly towards the end of last week, as the USD rallied and commodities corrected. The pair remains stuck in a neutral long-term trading range trading in narrower and narrower interval in recent weeks. Traders might continue to focus on the 1.29 support and the 1.32 resistance in the coming days as the 200-day moving average is getting closer to the current rate as well. Friday’s better than expected Canadian Employment Report could push the pair lower before next week’s FED meeting.
Our assessment: The pair still looks neutral both short- and long-term but Monday bearish reversal might be the beginning of a move lower towards the lower boundary of the current trading range.
