USD/CAD halted in anticipation of the April employment report from the US. The data will show how correct the optimistic assessment of the Fed is, and influence the future actions of the central bank regarding interest rates. If figures turn out to be noticeably worse than expected, the market may interpret it as a signal for the Fed to pause in raising rates, which will return risk appetite. That, in turn, will provoke a decrease in the pair.
technical picture:
The pair is above the middle line of the Bollinger indicator, below the SMA 5, but above the SMA 14. Meanwhile, the relative strength index (RSI) is above 50% and is moving horizontally, while the stochastic indicator is turning down, below the overbought zone.
Possible dynamics:
A drop below 1.2795 may lead to further fall to 1.2720.
