USD/CAD Uncertain

USD/CAD is seeing times of high uncertainty as it approached the level of support at 1.2900. The US dollar did not react in any way to the NFP data that turned out higher than expected but at the same time the Canadian dollar appreciated rapidly in reaction to the positive CAD news.

The news release on Friday pushed the pair below long term support at 1.2920 as the pair made a low of 1.2859. This low, however, did not last for too long as USD bulls mustered up their strength and brought the pair back into the long term upward trading channel.

Currently, USD/CAD is trading at 1.2936, slightly recovered but still very fragile as it is just coming back into the channel. Having in mind that the USD is not showing signs of confident buying, we can expect the pair to continue depreciating.

Chart: USD/CAD D1