USD/CAD: Recovery capped near 1.3115, US PCE eyed
|- Fresh US dollar selling amid risk reset drive the prices lower.
- But, negative oil prices keeps the Loonie on the back foot ahead of US core PCE and Fedspeak.
The bid tone around the US dollar weakened last hour, sending the USD/CAD back below the 1.31 handle. The sellers continue to lurk above the last, keeping a check on the upside.
The spot stalled its steady recovery-mode near 1.3115 region again, as the CAD bull stood resilient to losses in oil prices and a major turnaround in the risk sentiment. The European equities picked up fresh bids and are seen staging a comeback, dragging the safe-haven US dollar broadly lower. The US dollar index faded a spike to 96.67 to now trade near the 96.50 region, up 0.20% on the day.
Meanwhile, both crude benchmarks are down nearly 1% amid the European political and global growth concerns that could cap the bounce in the resource-linked Loonie. Next of note for the major remains the US core PCE price index, which is seen arriving at 2% y/y in Sept.
USD/CAD Technical levels
R1: 1.3115 (daily high)
R2: 1.3134 (Oct 19 high)
R3: 1.3160 (Oct 26 high)
Support
S1: 1.3048/42 (100, 20-DMA)
S2: 1.3018 (50-DMA)
S3: 1.3000 (key support)
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.