USD/CAD rebounds a little on the day after sellers failed to establish control
The loonie firmed after the release of the November month GDP data overnight but USD/CAD sellers failed to find enough conviction to establish a firm break below the 200-day MA (blue line) in order to gain control of the pair and establish a more bearish bias.
There's also the 61.8 retracement level @ 1.3120 that is helping to provide additional support for the pair and these two levels will be a key battleground on the day as we gear towards the US jobs report to come at 1330 GMT.
Right now, price is inching back up towards the highs for the day just above 1.3150 with some near-term resistance seen around 1.3165 from yesterday's high.
Given that risk sentiment is looking rather indecisive once again, I would expect price action to remain subdued between the 200-day MA and 1.3160 levels before we get further clues after the US jobs report is released.
It's usually the case we'll get Canadian labour market data released at the same time but for this month, that will only come about next week. Hence, the focus today will be on US payrolls so expect any directional break in USD/CAD to come only after the release of the figures there.
As mentioned yesterday, the 200-day MA and the 1.3120 support level are key in terms of support so any break there could open up a move back towards 1.3000 at the very least. As for upside levels, buyers will have to first work their way towards the 1.3200 handle before testing a cluster of key resistance levels in the form of the 100-day MA (red line) @ 1.3212 as well as the 100-hour MA @ 1.3209.
Those will be the key levels to watch out for today in any directional move later.
