FXStreet (Edinburgh) - The greenback is losing some of its shine at the end of the week, pushing the USD/CAD to challenge the key support at 1.0900.

USD/CAD down from 1.0940

Spot is now accelerating its correction lower from session tops above 1.0940 in early trade, putting the 1.0900 critical support to the test after US Payrolls disappointed expectations in July. In fact, the US economy added 209K jobs vs. consensus for a 233K print. The unemployment rate up-ticked to 6.2% vs. 6.1% expected and previous. “From a technical perspective, the USDCAD bull trend remains deeply entrenched in the market. Even in the event of a price setback today (on disappointing US data, for example), we have to reckon with only limited scope for USD weakness and a quick rebound”, observed Shaun Osborne, Chief FX Strategist at TD Securities.

USD/CAD levels to consider

As of writing the pair is flat at 1.0906 and a breakout of 1.0949 (50% of 1.1279-1.0620) would aim for 1.0962 (high Jun.5) and then 1.1007 (high May 2). On the downside, the immediate support lines up at 1.0850 (low Jul.30) followed by 1.0842 (200-d MA) and finally 1.0796 (low Jul.29).