USDCAD H1 AnalysisUSD/CAD is trading in what looks like an ascending triangle on the 1-hour time frame. And if that’s not major enough, you should also note that the pair hasn’t traded 100 pips above the 1.3300 major psychological resistance since June 2019.
The short-term consolidation points to a more-volatile-than-usual reaction for the pair when Canada and the U.S. both print their labor market reports later today.
If Uncle Sam’s headline NFP comes in as strongly as what this week’s ADP report suggested, then we could see USD/CAD break above the triangle and maybe make a play for the 1.3380 high seen back in September.
If Canada paints a much healthier job market, or if the dollar sees some profit-taking from its intraweek gains near the end of the week, then USD/CAD could break below the trend line and find support at the 200 SMA or the 1.3200 previous area of interest.
