The USDCAD saw a large portion of its intraday gains disappear during the New York Session after a pair of contrasting data on the currencies on both sides of the divide.
Data from Statistics Canada indicates that the Canadian trade deficit rose to C$3.25 billion in September, which was higher than the market expectation for a deficit of C$2.6 billion.
On the opposing side of the coin, the ISM services PMI data showed that economic activity in the services sector came in at a reading of 56.6, which was lower than the consensus and previous figures of 57.4 and 57.8 respectively. ADP private-sector employment for October rose by 365K, which missed the 650K estimate and also fell below the prior number of 753K.
However, the US election dominated price action on the pair, with results swinging one way and then another in several key battleground states.
Technical Outlook for USDCAD
As has been the case for most USD pairs all day long, the USDCAD has experienced a roller coaster ride. After posting initial gains on the day, the pair fell heavily and found support at the 1.30982 price level. This price level has been tested several times in the past month and has held firm.
Price is attempting a comeback, with 1.31501 as its initial target. Price advance beyond this resistance could make a break for 1.32044. This move also puts the 1.32458 price level in line as an additional target to the north.
On the flip side, rejection at 1.31501 puts the 1.31373 support under pressure. If this support gives way, the late August and early September lows at 1.30385 become the next target. 1.29953 and 1,29241 are additional downside targets.
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USDCAD Daily Chart
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