USD/CAD around 1.0420, ahead of data

FXstreet.com (Edinburgh) -The USD/CAD is trading in a narrow range on Thursday, meandering around 1.0420 ahead of the US data due later.

USD/CAD looks to the USD reaction

After yesterday’s testimony by Fed’s Bernanke, market participants will closely watch today’s results from the weekly report on the labour market, seconded by the regional gauge of the manufacturing sector sponsored by the Philly Fed. Analysts at TD Securities commented, “On the charts, USD/CAD remains stuck around the 1.04 area… Weak/mixed trend momentum signals suggest that this situation may persist for the moment as the market continues to work off the USD’s overbought signals from earlier in the month. We look for 1.0350/1.0450 as the rough, near-term range”.

USD/CAD tech levels

The pair is now advancing 0.17% at 1.0423 with the next resistance at 1.0440 (high Jul.18) ahead of 1.0445 (high Jul.17) and finally 1.0449 (high Jul.11). On the downside, a violation of 1.0401 (low Jul.18) would target 1.0373 (Kijun line) en route to 1.0355 (low Jul.17).

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