USD/CAD in range mode ahead of NFP
- Non-farm payroll and the wage’s growth on Friday might unlock the USD/CAD range.
- Earlier in the week, the FOMC statement did not break the loonie range.
The USD/CAD is trading at around 1.2852 on Thursday as the New York session came to en end.
The USD/CAD is struggling to find a clear direction and is for the moment confined in the 1.2800-1.2900 range for the 8th day in a row. Neither bulls nor bears are taking any risks as the pair is now sitting at its 50-period simple moving average on the daily time frame.
The status quo might change as the non-farm payroll and the wage’s growth are due to be released on Friday at 12:30 GMT. The news can potentially bring a lot of volatility and the loonie might break its range.
CAD prices are generally linked to oil prices. The range in crude oil is also reflected in the loonie.
Earlier in the week the main event was the FOMC statement on Wednesday where the Federal Reserve Bank left its target rate for overnight deposit with commercial banks unchanged as it was widely expected. The Fed said that"inflation on a 12-month basis is expected to run near the Committee's symmetric 2% objective over the medium term”. The Fed is widely expected to hike in June.
USD/CAD 4-hour chart
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Support is seen at 1.2800 and at 1.2650 demand level while resistance is seen at 1.2900 and at the 1.300 figure.