The USCAD pair fell sharply during today's session below 1.22 which is the lowest level since September 2017 ahead of tomorrow’s labor market data from both Canada and the US. Recently loonie has been gaining strength thanks to rising oil prices and more hawkish Bank of Canada. Tomorrow's figures from Canada may provide more clues regarding further actions from the BoC.
USDCAD pair broke below psychological support at 1.22 during today's session. If the current sentiment prevails downward move may be extended to the 1.2072 level which coincides with the lower limit of the descending channel. Also medium-term 50-day SMA (green line) crossed under the long-term 200-day SMA (red line). This has formed a bearish ‘death cross’ which supports the bearish scenario. However, if buyers will manage to regain control and return above 1.22, then stronger upward correction could be launched. Source: xStation5
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