The USD/CAD pair traded in a side way market during last week’s trading session. The pair rose to 1.3353 last week but lost momentum after breaching 1.3287 fibonacci level. Initial bias stays neutral for more consolidations. Further rise is still expected in the long term picture as long as 1.2951 support holds. A decisive break of 1.3353 resistance will target next long term retracement level at 1.3469 as positive data generally from the U.S. added to optimism over the strength of the country’s economy, fueling more speculation over a possible September rate hike. However, break of 1.2951 will confirm near term reversal and bring deeper pull back.
In the short term picture the pair is liable to retreat as long as 1.3353 resistance holds which shows the pair is probably in an over-bought condition and more fall could be seen to 1.3143 minor support. A break of 1.3143 would next aim 1.3015. However have it in mind that the pair remains in a bullish scenario in the long term trend.
Later in the week all eyes would be upon U.S data such as ISM Manufacturing PMI, ADP Non-Farm Employment Change, Non-Farm Employment Change and Unemployment Rate. Outcome of this data would determine if the Feds are going to be hiking Interest Rate in the month of September. Also investors would be monitoring the Canadian Employment Change.