Usdcad Trades Under Resistance

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Usdcad Trades Under Resistance

Usd/Cad Trades Under 1.3400 As Traders Await Nfp

The USD/CAD pair can be seen trading under the 1.3400 handle during Friday's session. According to experts, the weakness in the US bond yields and the US Dollar is pushing the USD/CAD pair lower.

For now, the trading price of USD/CAD is 1.3778, with a change of -0.08% for the day. Later today, the NFP report will serve as a fresh catalyst for the USD/CAD and could send the pair higher or lower. Per the forecasts, the NFP print will be 180K for January.

Usd/Cad Bears Remain In Charge

The USD/CAD technical outlook shows that the bearish momentum remains dominant as the pair is still under the 50 and 100 EMA lines on the 4-hour chart. Another noteworthy development on the USD/CAD 4-hr chart is that the 50 EMA is very close to crossing the 100 EMA.

If the 50 moves under the 100 EMA, it will validate the bearish cross and will render more downside for the USD/CAD. However, that could only happen if the outcome of the NFP report is bearish for the US Dollar.

The USD/CAD's nearest support is the 1.3360, the lower Bollinger Band (BB) limit. In addition, the same level is also low from the 31st of January & and thus holds importance for the USD/CAD traders.

If the 1.3360 handle is lost, Canadian Dollar buyers will target the 1.3300 support zone followed by the 1.3228, which is the low from 2 January.

The other scenario is a bullish USD/CAD, propelling the pair towards the 1.3430 level. A break of this level will send the USD buyers toward the 1.3500 resistance zone. Any further bullish momentum will open the doors towards 1.3535 (25th January's high).

Even if the NFP report comes out, these support & and resistance zones will remain relevant. This means the USD/CAD can watch for the price action movements near these levels to gauge acceptance or rejection.

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