USD/CAD deflates to 1.4050 ahead of ADP report

By FXStreet FXStreet (Edinburgh) – The greenback is now retracing part of the earlier spike to the 1.4100 handle vs. its Canadian peer, with USD/CAD returning to the mid-1.4000s for the time being.

USD/CAD capped around 1.4100

CAD is now picking up pace following a recovery of the barrel of West Texas Intermediate to the vicinity of the critical $30.00 handle, allowing the pair to revisit the 1.4050 area after testing highs in the 1.4100 neighbourhood in early trade.

While crude oil dynamics continue to drive the sentiment in the pair in the near term, today’s ADP report, the ISM Non manufacturing and EIA’s crude oil inventories will be in the limelight later in the NA session.

USD/CAD significant levels

As of writing the pair is up 0.16% at 1.4049 and a surpass of 1.4230 (20-day sma) would open the door to 1.4327 (high Jan.26) and then 1.4692 (high Jan.20). On the other hand, the immediate support lines up at 1.3890 (3-month uptrend) ahead of 1.3812 (low Jan.4) and finally 1.3553 (100-day sma).

Trade Nonfarm payrolls with FXStreet – Live Coverage
For more information, read our latest forex news. …read more

Source:: FX Street