USD/CAD struggles to gain any meaningful traction ahead of US/Canadian jobs report
|- Subdued oil prices undermined the loonie and lifted the USD/CAD pair.
- The uptick lacked bullish conviction and remained capped below 1.3200.
- Friday’s focus will remain on US/Canadian monthly employment details
The USD/CAD pair edged higher on the last trading day of the week, albeit lacked any strong follow-through and remained capped below the 1.3200 handle.
The pair on Thursday stalled this week's rejection slide from a resistance marked by six-month-old descending trend-line and staged a modest rebound from one-month lows, around the 1.3160-55 region.
Focus shifts to NFP and Canadian jobs report
The pair gained some follow-through traction during the Asian session on Friday and was being supported by subdued crude oil prices, which undermined demand for the commodity-linked currency – loonie.
Despite the fact that OPEC and its allies agreed to increase output cuts by nearly 50% in early 2020, oil prices struggled to gain any meaningful traction and played its part in lending some support to the major.
The uptick, however, lacked any bullish conviction amid a mildly weaker tone surrounding the US dollar. Moreover, investors also seemed reluctant to place any aggressive bets ahead of the key macro releases.
Friday's economic docket highlights the release of the closely-watched US monthly jobs report, popularly known as NFP, which coupled with Canadian employment details will provide a fresh impetus to the major.
Hence, it will be prudent to wait for a sustained buying interest before confirming that the pair might have bottomed out in the near-term and positioning for any meaningful recovery move in the near-term.
Technical levels to watch
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