USD/CAD is keeping lower on a softer dollar amid the more positive risk mood
The pair is still flirting around its 200-day MA (blue line) @ 1.3464 as the risk rally extends, helping to keep the dollar weaker on the session.
It has been a steady decline for the pair over the past two weeks, after breaking below the support range at 1.3856 and then falling below its 100-day MA (red line) to here.
For now, the 200-day MA offers buyers a region to lean on and will be the key battleground as we look towards the weekend.
Keep above that and buyers will still be able to use the technical level as an area for support but break below that and the downside pressure could accelerate further again.
Looking ahead, the release of the US and Canadian jobs report will be the key focus in the pair ahead of North American trading but after, OPEC+ risks will also be a factor to consider over the weekend with the meeting to take place tomorrow.
That said, OPEC+ are likely to settle on a 1-month extension on the existing output cuts deal and that is largely baked into oil prices already – which are also keeping more steady at $37.70, up by a little over 0.8% in trading today.
As such, barring any major surprises from jobs data later, it is going to be a test of sellers’ resolve to try and push a break under the 200-day MA.
Should the risk rally keep extending into next week though, it may be tough to fight the move with a break under the key technical level likely to spur further downside pressures towards the 3 September high @ 1.3383 and then the swing region around 1.3328-45.