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USDCAD Consolidates Above Key 1.25 Level Ahead of NFP

The USDCAD is consolidating for a 3rd straight day just above the psychologically key 1.25 whole figure level, appearing to have halted the slide since the July high. Significantly, the USDCAD has bounced from the 50% Fib retrace of the June-July rally, with a weekly close above the weekly chart downchannel resistance coming as early as following Friday's Canadian employment data and the highly anticipated monthly US Non-Farm Payrolls (NFP). Except for the daily MACD which still slopes slightly down, the weekly and daily RSI, Stochastics and MACD are bottomish. I am looking to go long in the green zone (of the daily chart), targeting the red zone for Wednesday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).

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