Canadian Dollar found a little room but remains sedate in midweek trading

The Canadian Dollar (CAD) saw soft gains on Wednesday as markets steadily ate away at last week’s surge in the US Dollar (USD) that sent the Loonie skidding into multi-month lows. The Canadian Dollar is sticking close to firmly entrenched median bids against the Greenback as broad-market momentum bleeds into the midrange. Canada sees January’s Unemployment Rate and Net Change in Employment figures on Friday, and Loonie traders will be gearing up for the key labor data dump with markets holding steady, rounding the corner on Wednesday.

The Canadian Dollar (CAD) saw gains against nearly all of its major currency peers on Wednesday, gaining notable ground against the Swiss Franc (CHF) and the Japanese Yen (JPY). The Canadian Dollar is close to flat against the Pound Sterling (GBP), and the Loonie is up around a tenth of a percent against the US Dollar, helping to keep the USD/CAD pair pinned below the 1.3500 handle. USD/CAD fell below 1.3500 on Tuesday, and the pair remains unable to reclaim the key handle, etching an intraday low of 1.3455 on Wednesday. Daily candlesticks have the USD/CAD trading firmly into the 200-day Simple Moving Average (SMA) near 1.3475, and the pair is at risk of tipping back into a congestion zone between the 50-day and 200-day SMAs as long-term trends drift into a consolidation trap. A tilt into bullish territory will need to break above 1.3550 to make another leg higher, while sellers will be looking for further downside from the near-term swing low into 1.3558.