USD has been dominating CAD since the bounce off 1.3250 support level. On the USD front, ADP Non-Farm Employment report is due today, so the pair is expected to trade with some volatility. ADP Non-Farm Employment Change is expected to decrease at 178k which previously was at 263k. Besides, ISM Manufacturing Index report is also going to be published today which is expected to show a minor increase to 56.1 which previously was at 55.2. Apart from that, Crude Oil Inventories report is also going to be released which is expected to show a -3.3M fall which previously was at -3.6M. On the other side, Canada does not have any economic reports today, but tomorrow Canada's Trade Balance report is going to be posted which is expected to show a proficit value at 0.3B from the previous deficit of -1.0B. As USD has already gained a fresh impetus against CAD, the pair is expected to reverse downward to its mean before showing any further move.
Now let us look at the pair from the technical view. The price has shown a good amount of bullish rejection yesterday. Currently the price is still showing some bullish rejection intraday. The pair is expected to reverse back to the mean of 20 EMA which is at horizontal support of the 1.3600 area. If the price moves down to 1.3600 and we see any bearish rejection at the level, we will consider buy positions with a target towards 1.40 in the coming days.
