USD/CAD’s decline has accelerated on the back of yesterday’s upbeat U.S. economic data, and ahead of the national employment report tomorrow. The pair blew through the critical 1.0202 and 1.0135 support levels, and is now free to test the 1.0110 level from April 30 (not shown on the chart). Beyond that, there is support at 1.0011 after which the pair can break below parity. Beware, however, the RSI in the 31.59 level is nearly oversold (defined by falling below 30).
The broader decline in USD/CAD is clearly intact, but some consolidation in the pair is in order. In the short term, 1.011 could be the level against which the pair will rebound, though on a longer term, we expect USD/CAD to continue falling, particularly if tomorrow’s employment data come in strong again.