USD/CAD back to 1.3100 after reaching 3-week highs

USD/CAD reached on Thursday the highest level in three weeks near 1.3150 but then, a sharp decline of the US dollar across the board pushed the pair to the downside and it is about to end the day marginally lower, trading around 1.3100, despite the 3.50% decline in crude oil prices.

Double top?

For the second day in a row USD/CAD approached 1.3150 but it failed to break higher. Today it peaked at 1.3148, the highest level since August 9 and then turned to the downside. The decline found support at 1.3080 and it was trading at 1.3100.

In the short-term the pair could have for a double top around 1.3150, with a base at 1.3090. A consolidation below 1.3090 could trigger a bearish correction. While a break on top of 1.3150 could lead to a rally to 1.3190.

During the next hours volatility could decline, as usually happens on Fridays before the release of the NFP report. Near the time of the release of the report (12:30 GMT) it could start rising again. Canadian employment data will be publish the next Friday, September 9.