• Catches some fresh bids near 1.2865-60 region, 3-day old trading range support.
• Traders unwind bearish bets amid holiday-thinned liquidity conditions.
• Next week’s important macro releases to provide some fresh impetus.
The USD/CAD pair has managed to recover early lost ground to a three-day-old trading range support and is now looking to move back above the 1.2900 handle.
Despite a subdued US Dollar demand, the pair once again managed to gain some positive traction near the 1.2865-60 region and prompted traders to cover their short position from an immediate support.
Meanwhile, the uptick lacked any obvious catalyst and hence, it would now be interesting to see if the pair is able to build on the momentum or traders look at the move as an opportunity to lighten their bullish bets.
With global market shut to celebrate the Easter long weekend, the pair seems more likely to hold on to its recent trading range and wait for next week’s important macro releases, including the keenly watched NFP, for some fresh directional impetus.
Technical levels to watch
Any subsequent up-move might continue to confront some fresh supply near the 1.2935-40 region, above which the pair seems all set to aim towards reclaiming the key 1.30 psychological mark. On the flip side, sustained weakness below the 1.2865-60 immediate support now seems to prompt some aggressive selling and drag the pair back towards retesting the 1.2810-1.2800 support region.
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