USD/CAD Price Analysis: Bounces off monthly low ahead of Canadian jobs report

• USD/CAD snaps three-day losing streak, consolidates heaviest declines in two weeks.
• Bearish MACD, sustained trading below key SMAs keep sellers hopeful.
• Forecasts for Canadian employment figures suggests recovery in February.

USD/CAD wavers around 1.2540, up 0.13% intraday, while heading into Friday’s European session. In doing so, the quote takes rounds to the day’s top after bouncing off a monthly low of 1.2520 to defy the previous three-day downtrend.

However, the pair traders remain cautious of the corrective pullback amid bearish MACD and the quote’s trading below 21-day and 50-day SMA, not to forget a descending resistance line from January 28.

Also challenging the USD/CAD recovery is the anticipated strength in the Canadian employment data, up for publishing at 13:30 GMT today.

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The pair currently targets March 04 low near 1.2575 but 21-day and 50-day SMAs, respectively around 1.2635 and 1.2695, will be tough challenges for the USD/CAD bulls.

Even if the quote manages to cross 1.2695, also the 1.2700 threshold, a six-week-old falling trend line near 1.2710, will add to the upside barriers.

Meanwhile, the 1.2500 round-figure serves as immediate support ahead of highlighting the three-month-long support line around 1.2455.

USD/CAD daily chart

Trend: Bearish