USDCAD pair retreats from near 2-week tops but holds above 1.24 mark. Read on and get more updates on the pair from the 5 February USDCAD Technical Forecast.
5 February, GKFX – Having posted a daily high near mid-1.2400s, the USD/CAD pair came under some selling pressure and eroded a part of previous session’s strong gains.
With investors looking past Friday’s upbeat US jobs data, a subdued US Dollar price action failed to provide any fresh bullish impetus and did little to assist the pair to build on last week’s upsurge.
The latest NFP report showed wage growth hitting an 8-1/2 year high and reinforced the Fed expectations for a pickup in inflation this year, albeit was partly offset by concerns over the US President Donald Trump’s protectionist stance.
Sliding Oil prices help limit deeper losses
The downside, however, remained cushioned and the pair managed to hold its neck above the 1.2400 handle amid weaker crude oil prices, which was seen denting demand for the commodity-linked currency – Loonie.
US ISM PMI eyed for fresh trading impetus
Traders now look forward to the US economic docket, highlighting the release of ISM non-manufacturing PMI for some fresh trading impetus.
5 February USDCAD Technical Forecast
A follow-through weakness below the 1.2400 handle is likely to accelerate the fall towards 1.2370-65 horizontal support before the pair eventually darts back towards the 1.2300 handle. On the upside, immediate resistance is now pegged near mid-1.2400s, above which the pair seems set to aim towards reclaiming the key 1.2500 psychological mark.
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