The USDCAD pair lacked any firm directional bias and was seen oscillating in a narrow trading band around the 1.3100 handle through the mid-European session on Monday.
November 5, GKFX – A combination of diverging forces failed to provide any fresh impetus and led to subdued/range-bound price action at the start of a new trading week.
The US Dollar struggled to extend its post-NFP up-move and failed to assist the pair to build on Friday’s rebound from over one week low level of 1.3049.
However, the ongoing downfall in crude oil prices, with WTI crude oil consolidating near 7-month lows, continued weighing on the commodity-linked currency – Loonie and helped limit any immediate sharp downfall, rather provided a minor lift to the major.
It would now be interesting to see if the pair is able to catch any fresh bids or continues with its lacklustre trading action as market participants now look forward to the release of US ISM non-manufacturing PMI for some fresh impetus.
USDCAD Technical Forecast
Immediate resistance is pegged near the 1.3130-35 region and is followed by the 1.3165-70 supply zone, above which the pair seems all set to aim towards reclaiming the 1.3200 handle.
On the flip side, the 100-day SMA support, currently near the 1.3075 region, is likely to protect the immediate downside, which if broken might turn the pair vulnerable to slide further towards 50-day SMA, around the 1.3025-20 region, en-route the key 1.30 psychological mark.
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