Technical Analysis: USDCAD bears aim for 1.3155 support confluence ahead of Canadian jobs report
USDCAD remains bears' favorite as sustained trading below 200-bar SMA and 50% Fibonacci retracement level keeps sellers hopeful amid downbeat MACD. Also favoring the odds of the pair's weakness could be positive expectations from Canada's September month employment report, up for publishing on Friday. However, a confluence of a one-month-old ascending support line and 61.8% Fibonacci retracement may take clues from the oversold RSI conditions to challenge the bears in case the data disappoints. Hence, USDCAD traders should remain cautious unless witnessing a downside break of the 1.3155 support joint. A break of 1.3155 holds the key to the pair's further south-run towards the 1.3100 round-figure and September month's low near 1.2993. Though, 1.3040/35 and the 1.3000 psychological magnet act as additional filters during the declines.
On the contrary, downbeat data will gain support from the RSI to cross immediate resistances, namely the 50% Fibonacci retracement and 200-bar SMA around 1.3200 and 1.3215 respectively. It should, however, be noted that the Tuesday's low near 1.3240 and a resistance line connecting highs marked on September 30 and October 07, near 1.3300, will tease buyers for entry. If at all USDCAD crosses 1.3300 on a daily closing, the monthly peak close to 1.3340 and the previous month's top near 1.3420 will be the key to watch.