FxWirePro: USDCAD struggles to close above trend line resistance, markets eye employment data

Ichimoku analysis (4 Hour chart)

Tenken-Sen- 1.30996

Kijun-Sen- 1.30779

USDCAD has halted its three days of a winning streak and started to decline slightly from minor top 1.31616. The pair was one of the worst performers in the past 5 months and lost more than 10% on broad-based US dollar selling and improving the Canadian economy.  The Canadain economic data came slightly better than expected this week. The Markit Manufacturing PMI came at 55.1 in Aug vs forecast of 50.4. Markets eye US Non-Farm payroll and Canadian employment data for further direction. It hits an intraday low of 1.30864 and currently trading around 1.30950.

WTI crude oil is trading in a narrow range between $43.75 and $40.21 for the past one week. Any break below $40 confirms further weakness, a dip till $38.70 likely. It is hovering around $41.57.

Technically, the pair faces near term support at 1.3130. Any violation below targets 1.3100/1.3035. The near term resistance is at 1.3200, an indicative break beyond will take to the next level till 1.3245/1.3330.

It is good to buy above 1.31600 with SL around 1.3100 for the TP of 1.3325.