Technical analysis: Canadian Dollar stubbornly swims in familiar circles

The Canadian Dollar (CAD) is broadly softer on Tuesday, giving up most of Monday’s early gains to trade into familiar bids. The CAD is flat to down across the board, shedding around a third of a percent against the New Zealand Dollar (NZD) and the Euro (EUR). The CAD is also down around a quarter of a percent against the US Dollar (USD).

USD/CAD rose into touching range of the 1.3700 handle on Tuesday with the CAD shrugging off Monday’s slim gains. The pair is trading into congestion near the 200-hour Exponential Moving Average (EMA) at 1.3697, and the Canadian Dollar has leaked away most of the gains found after last Friday’s US Nonfarm Payrolls (NFP) print dragged the pair down to 1.3610.

Daily candlesticks show USD/CAD finding near-term technical support from the 50-day EMA at 1.3629, with long-term bullish pressure from the 200-day EMA at 1.3552. The pair is still down from mid-April’s peak near 1.3850, but USD/CAD is still trading higher for the year, up 3.4% from January’s opening bids near 1.3250.