USD/CAD rallies a bit during the trading session on Wednesday

The US dollar has rallied a bit during the trading session on Wednesday, using the 1.2775 level to find buyers, and breaking towards the 1.2850 level. That is an area that was previous support, and it now could be resistance, at least for the short term. Ultimately, I think that this market will have a lot to do with what happens on Friday, as the jobs number in the United States comes out, right along with the Canadian jobs number. Because of this, it is going to be a very difficult trading condition until we get the clarity that those numbers will provide. Ultimately, I think that the market should continue to go back and forth between now and then, but once we get those numbers released, it will be a simple matter of deciding whether one country is doing better than the other.

Oil markets course will have their normal influence on the Canadian dollar, and I think that it is only a matter of time before that market could make a significant move as well. We have been rallying over the last several weeks, but we are starting to get towards the massive resistance. The uptrend line of course is important, but if we were to break down below there, then we could see this market go much higher as oil will unravel. Obviously, the opposite can be true as well. However, I think jobs will be the biggest catalyst over the next week or so and could set the tone for next week as well. Today could be rather quiet though.