USD/CAD Price Analysis: Eyes further losses near 1.2700, US/Canada employment data in focus
|- USD/CAD drops for the second consecutive day while staying on course to snap two-week downtrend.
- Seven-week-old support, 100-DMA lures bears ahead of December jobs report.
- 21-DMA guards immediate upside, monthly horizontal line adds to the resistances.
USD/CAD remains on the back foot for the second day in a row as sellers attack 1.2700, down 0.13% intraday heading into Friday’s European session.
In doing so, the Loonie pair extends the previous day’s U-turn from 21-DMA amid bearish MACD signals as traders await key employment data from Canada and the US for December.
Read: USD/CAD bears remain on top desite hawkish Fed, oil prices and BoC support CAD
That said, 38.2% Fibonacci retracement (Fibo.) of October-December upside, near 1.2700 threshold, restricts immediate declines of the USD/CAD prices ahead of an ascending support line from November 19, near 1.2645 at the latest.
It should be noted, however, that the pair’s downside break of 1.2645 will need to conquer the 1.2630-25 support confluence, including the 100-DMA and 50% Fibo., to keep the bears on the driver’s seat.
Alternatively, strong resistance of the monthly horizontal line, around 1.2845, adds to the upside filters even if the USD/CAD prices manage to cross the immediate hurdle of the 21-DMA near 1.2795.
If at all the quote stays above 1.2845, odds of the pair’s rally towards 1.2900 and December’s peak of 1.2964 can’t be ruled out.
USD/CAD: Daily chart
Trend: Further declines expected
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