#USDCAD @ 1.34326 struggles for a firm direction on Friday and remains confined in a narrow range. (Pivot Orderbook analysis)

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• USD/CAD struggles for a firm direction on Friday and remains confined in a narrow range.
• Traders now await the release of the monthly employment data from the US and Canada.
• Bearish traders might wait for sustained weakness below the 1.3385 confluence support.

The pair currently trades last at 1.34326.

The previous day high was 1.3471 while the previous day low was 1.3395. The daily 38.2% Fib levels comes at 1.3424, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3442, expected to provide resistance.

The USD/CAD pair extends its sideways consolidative price moves through the mid-European session and remains confined in a narrow trading band below mid-1.3400s.

The US Dollar selling remains unabated on the last day of the week amid growing acceptance that the US Federal Reserve will slow the pace of its rate-hiking cycle. This, in turn, continues to cap the USD/CAD pair, though a modest downtick in Oil prices undermines the commodity-linked Loonie and acts as a tailwind. Traders also seem reluctant to place aggressive bets ahead of the monthly employment reports from the US and Canada.

From a technical perspective, the USD/CAD pair, so far, has managed to hold above the 1.3400 mark and the 100-period Simple Moving Average (SMA) on the 4-hour chart. The latter, currently pegged around the 1.3385 area, coincides with over a two-week-old ascending trend-line extending from the November swing low and should now act as a pivotal point. A convincing break below will be seen as a key trigger for bears and set the stage for further losses.

The subsequent downfall will expose the crucial 100-day SMA support, currently around the 1.3300-1.3290 region. Some follow-through selling should pave the way for an extension of the recent sharp pullback from a 29-month peak touched in October.

On the flip side, the overnight swing high, around the 1.3470 zone, might act as an immediate barrier ahead of the 1.3500 psychological mark. A sustained strength beyond the latter could lift the USD/CAD pair towards the 1.3575-1.3580 hurdle en route to the 1.3600 mark and the multi-week high, around the 1.3645 zone set on Tuesday.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3439 at the time of writing. Pair opened at 1.3432 and is trading with a change of 0.05 % .

The pair is trading above its 20 Daily moving average @ 1.3401, below its 50 Daily moving average @ 1.3577 , above its 100 Daily moving average @ 1.329 and above its 200 Daily moving average @ 1.3026

The previous day high was 1.3471 while the previous day low was 1.3395. The daily 38.2% Fib levels comes at 1.3424, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3442, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3395, 1.3357, 1.3319
• Pivot resistance is noted at 1.3471, 1.3509, 1.3547

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