USD/CAD has been trading sideways in the short term, showing us once again that the pair still needs a strong bullish spark to be able to start increasing again. Unfortunately, the pair plunged after the US NFP was reported below expectations.
Still, some better-than-expected US data reported during the week could really help the pair to develop a bounce. You should be careful when trading USD/CAD as the bias is still bearish.
USD/CAD Seems Undecided!
USD/CAD stays above the weekly pivot point (1.2069) level which acts as support. Still, I believe that only a valid breakout above the R1 and through the 1.2144 level could really announce a potential upside reversal.
Dropping and stabilizing below 1.2057 former low could indicate that the pair may drop deeper in the short term.
Outlook!
The first buying opportunity is after USD/CAD makes higher highs and closes above 1.2106 level. Moreover, jumping and closing above 1.2144 could bring a good long signal. The R3 (1.2259) could be used as an upside target.
