• USD/CAD slipped lower on Thursday as the U.S. dollar came under broad selling pressure following a weaker-than-expected U.S. non-farm payrolls report.
• The pair fell to an intraday low before stabilizing, with the 1.4154 level emerging as a crucial near-term support area. Buyers stepped in around this zone, helping the pair recover modestly.
•The inability to secure a decisive break below 1.4154 suggests USD/CAD remains in a consolidation phase for now, with traders awaiting fresh economic data or policy signals to determine the next directional move.
• On the trade front, market sentiment improved after the U.S. shifted its focus toward the scheduled annual review of the USMCA, reducing concerns over a potential withdrawal from the trade agreement.
• Immediate resistance is located at 1.4230(Daily high), any close above will push the pair towards 1.4275(23.6%fib).
• Support is seen at 1.4154 (38.2%fib) and break below could take the pair towards 1.4097(SMA 20).
Recommendation: Good to buy around 1.4160, with stop loss of 1.4140 and target price of 1.4230
