USD/CAD correcting lower ahead of dueling job reports

FXstreet.com (Barcelona) - Both the US and Canada will release their monthly employment statistics Friday. The USD/CAD is working its way through a short-term correction ahead of the data.

USD/CAD sliding lower in what appears to be a healthy correction ahead of data

Traders that were long of USD/CAD may be flattening out their positions ahead of the matching employment reports due out of the US and Canada Friday. The sell-off commenced shortly after the last piece of bullish data was released out of the US Thursday – which is typical “sell on the news” profit-taking behavior.

Technical outlook for USD/CAD

At 1.0482, the USD/CAD appears to be headed lower in an “abc” correction with 1.0442 as its downside target. Any break below that level will mean to technicians that the move lower is more than just a correction. Resistance for the cross, meanwhile, comes in north of 1.0600.

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