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USD/CAD Consolidating Ahead of the Jobs Data

The USD/CAD has been consolidating this week between 1.10 and 1.1077. Before the consolidation, there was a sharp decline that is challenging the bullish continuation, which was signaled by a break above a 2-month triangle. 

The USD/CAD basically neutralized its bullish mode and introduced some near-term bearish bias. A break a below 1.10 opens up the 1.0955 and 1.0910 support pivots in the near-term.

A break above 1.1080 opens up the 50-61.8% retracement area. There is a support/resistance pivot around 1.1150.

If the market can hold price above or below the consolidation after tomorrow's jobs reports, it may develop a medium term trend in that direction. The upside scenario should challenge the 2014 high around 1.1277, while the bearish scenario has a medium target towards 1.0740, the 2013 high.

US NFP: The US Non-Farm Payroll for March is forecast to show about 200K jobs added, which would improve upon the 175K added in February.

Canada Employment Change: The Canadian economy is expected to have added 21.5K jobs in March, which would be a rebound from a loss of 7.0K jobs in February.