The Canadian Dollar (CAD) is falling for the fifth consecutive trading day against the US Dollar (USD), with the Greenback getting bolstered against the broader FX market after the US ISM Manufacturing Purchasing Managers’ Index (PMI) for December came in above expectations, despite still printing in contractionary territory below the 50.0 midline.

Economic data from Canada is once again absent from the data docket on Wednesday, and Friday’s Canadian Unemployment Rate and Average Hourly Wages are set to be entirely eclipsed by the US Nonfarm Payrolls (NFP) for December. The Canadian Dollar (CAD) is slipping back against the US Dollar, extending recent declines and driving the USD/CAD pair further above the 200-hour Simple Moving Average (SMA). The pair is set for a fresh challenge of the 1.3400 level, provided near-term action continues to catch support from the bullish crossover of the 50-hour and 200-hour SMAs near 1.3275.

Daily candlesticks have the USD/CAD extending a bullish correction into a fifth consecutive trading day, but the pair remains firmly below the 200-day SMA near 1.3500. Despite this, technical indicators are still recovering from getting pinned deep into oversold territory after the pair’s multi-week decline from November’s peak of 1.3899. Further room to run could be uncovered before the 50-day SMA manages to make a bearish cross of the 200-day SMA.