USD/CAD hits weekly lows under 1.2900 amid risk appetite

Matías Salord FXStreet

THIS POST HAS BEEN DEPRECATED

Loonie gains momentum on higher crude oil and as stocks rally.
USD/CAD moves away from the 1.3000 area.
Consolidation below 1.2900 to confirm bearish bias.

The USD/CAD broke to the downside during the American session as US stocks soar and as crude oil prices jump. The pair dropped to 1.2899, hitting the lowest level in a week.

There is no bad data for stocks

The decline in US Consumer Sentiment to the lowest on record did not weaken the rally Wall Street. The Dow Jones is rising by 2.12% and the Nasdaq by 2.14%. The improvement in market sentiment is also driving crude oil prices to the upside. The WTI barrel is at multi-day up almost 4%.

The combination of risk appetite, higher crude oil prices and a weaker dollar are pushing USD/CAD to the downside on Friday. On a wider perspective, analysts at MUFG Bank warn the loonie could be hurt more than other currencies by intensifying global growth fears and from negative spill-over risks from higher rates.

Testing 1.2900

On Thursday, USD/CAD was testing the critical resistance around 1.3000. It failed to break higher and pulled back. Currently, is it trading under the 1.2900, a relevant support. A consolidation below should open the doors for an extension of the move lower targeting initially 1.2860.

The bias points to the downside in the short-term and it would be reinforced with a break under 1.2580. The dollar needs to break above 1.3000 to strengthen.

Technical levels

USD/CAD

Overview
Today last price	1.292
Today Daily Change	-0.0074
Today Daily Change %	-0.57
Today daily open	1.2994

Trends
Daily SMA20	1.2778
Daily SMA50	1.2796
Daily SMA100	1.2728
Daily SMA200	1.2677

Levels
Previous Daily High	1.3018
Previous Daily Low	1.2936
Previous Weekly High	1.3079
Previous Weekly Low	1.2774
Previous Monthly High	1.3077
Previous Monthly Low	1.2629
Daily Fibonacci 38.2%	1.2987
Daily Fibonacci 61.8%	1.2967
Daily Pivot Point S1	1.2948
Daily Pivot Point S2	1.2901
Daily Pivot Point S3	1.2867
Daily Pivot Point R1	1.3029
Daily Pivot Point R2	1.3064
Daily Pivot Point R3	1.3111

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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