The pair remains above mid-1.3600s as traders await US Nonfarm Payrolls and Canadian employment data.
The USD/CAD pair trades with a slight negative bias in early Asian trading but holds above 1.3650, near a one-week high. Market participants are cautious ahead of today’s US Nonfarm Payrolls report and Canadian jobs data, which could influence monetary policy expectations for both countries.
Technical indicators suggest a near-term bullish bias, with the pair trading above its 100-period Simple Moving Average and the 23.6% Fibonacci retracement level. The Relative Strength Index at 61 signals positive momentum without overbought conditions, while the MACD remains mildly positive.
Downside pressure on crude oil prices is supporting the USD against the commodity-linked Canadian dollar. Resistance levels are seen at 1.3708, 1.3757, and 1.3807, corresponding to higher Fibonacci retracement levels.