USD/CAD rallying has eased following the sideways movement of crude oil price. The Canadian dollar is a commodity currency whose value is often impacted by oil prices. On Thursday, WTI futures were down by 0.45% to trade at $59.28. $60 remains a key resistance level that the oil futures can seem to push past.
USD/CAD is also set to react to the US initial jobless claims data. Analysts expect the resumption of a downtrend after last week’s rise. The predicted 680,000 is lower than the previous 719,000. Besides, the Federal Reserve’s chair is scheduled to speak later today.
Investors are also eyeing Canada’s employment numbers in Friday’s session. The forecasted 100,000 is lower than February’s 259,200, which is bearish for the Canadian dollar.
USDCAD Technical Outlook
On a one-hour chart, USD/CAD is trading along the 28-day exponential moving average and slightly below the 14-day EMA. After hitting its two-week low earlier in the week, it rebounded to Wednesday’s high of about 1.2634. However, the momentum has since eased, with the sideways trading extending in today’s session. At its current price of 1.2605, it is finding support at 1.2600.
USD/CAD is likely to remain range-bound between 1.2600 and 1.2620. If the bulls manage to push the price past 1.2620, the next target will be 1.2647. On the flip side, the bears may push the support level lower to 1.2589. Below this point, the target to watch out for is 1.2560.