The USD/CAD pair reversed all of its gains to 1.3200 handle and is now headed back towards retesting daily trading range lows amid strong recovery witnessed in crude oil prices.
Currently hovering around 1.3150 region, renewed selling pressure around the greenback restricted further up-move and the pair faced rejection near 1.3200 handle. Moreover, the pair lost its upside momentum as rising oil prices provided some respite to the commodity-linked currency - loonie, which was trading weaker for the second consecutive session on the back Friday's disappointing releases from Canada.
Next in focus would be the release of new home sales data from the US ahead of the first US Presidential debate between Hillary Clinton and Donald Trump later today.
Technical levels to watch
A follow through weakness below 1.3150 support is likely to accelerate the slide immediately towards 1.3130, which if broken has the potential to drag the pair back towards 1.3100 round figure mark. Meanwhile on the upside, 1.3200 handle now seems to have emerged as immediate strong resistance. A convincing move above this strong hurdle should now trigger a fresh bout of short-covering rally immediately towards 1.3245-50 resistance before the pair eventually rises to its next major resistance near 1.3285-90 region.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD turns south toward 0.6400 after mixed Australian jobs data
AUD/USD has come under renewed selling pressure and turned south toward 0.6400 after Australian employment data pointed to loosening labor market conditions, fanning RBA rate cut expectations and weighing on the Aussie Dollar.
EUR/USD holds above 1.0650 amid renewed selling pressure in US Dollar
The EUR/USD pair edges higher to 1.0672 on Thursday during the early Asian session. The recovery of that major pair is bolstered by renewed selling pressure in the US Dollar and a risk-friendly environment.
Gold retreats as lower US yields offset the impact of hawkish Powell speech
Gold prices retreated from close to weekly highs during the North American session on Wednesday amid an improvement in risk appetite. The bullish impulse arrived despite hawkish commentary by US Federal Reserve officials.
OMNI post nearly 50% loss after airdrop and exchange listing
Omni network lost nearly 50% of its value on Wednesday after investors dumped the token following its listing on top crypto exchanges. A potential reason for the crash may be due to the wider crypto market slump.
US stock continue to stumble as traders rethink rates
US stocks grappled with uncertainty on Wednesday in the wake of a cautious string of commentary from the US Federal Reserve officials. The S&P 500 is currently experiencing its longest non-bullish streak in months.