- USD/CAD stalls Thursday’s sell-off, re-attempts 1.2500.
- Daily technical setup appears in favor of USD/CAD bulls.
- Key US, Canadian data in focus for fresh direction on the major.
USD/CAD has entered a phase of bearish consolidation around 1.2500, as the sellers take a breather after Thursday’s decline and ahead of the critical employment data from the US and Canada.
The bullish undertone in the US dollar amid firmer Treasury yields is supporting the major. However, buyers remain skeptical amid the renewed upside in WTI prices.
From a near-term technical perspective, USD/CAD is seen rebounding towards the 21-Daily Moving Average (DMA) at 1.2544 amid a bullish Relative Strength Index (RSI) and a bull cross.
The momentum indicator continues to hold above the midline, keeping USD/CAD bulls hopeful.
Meanwhile, the 50-DMA piercing through the 100-DMA to the upside has confirmed the bull cross on the daily sticks, adding credence to the constructive outlook for the major.
On recapturing the 21-DMA resistance, the bulls could then target the downward-sloping 200-DMA at 1.2579. Further up, the 1.2800 cap is likely to be put to test.
USD/CAD: Daily chart
Alternatively, should the price deliver a daily closing below Thursday’s low of 1.2479 the sellers could aim for the July 30 low at 1.2422.
The bullish 50-DMA support at 1.2381 will be the line in the sand for the optimists.
USD/CAD: Additional levels
View more information: https://www.fxstreet.com/news/usd-cad-price-analysis-consolidates-around-12500-awaits-us-canadian-jobs-202108060724