USD/CAD back below 1.3100 handle, inching closer to weekly low

Haresh Menghani FXStreet

Having posted a session high near 1.3120 region, the USD/CAD pair ran through some fresh offers and has now drifted into negative territory for the second consecutive day.

Currently trading back below 1.3100 handle, around 1.3085 region, a fresh wave of US Dollar selling pressure during early European session dragged the pair back closer to previous session's sharp reversal swing lows.

Uncertainty surrounding the US President Donald Trump's fiscal policies, which has been supportive of the US Dollar strength since the November election, continues to dampen expectations for an immediate Fed rate-hike move and weighing on the greenback across the board.

Even a softer tone around oil markets, which tends to dent demand for the commodity-linked currency - Loonie, has failed to provide any immediate respite, albeit might lend some support closer to weekly lows near 1.3075 area.

Friday's economic docket features the release of Canadian CPI figures, due later during NA session, and should provide fresh impetus for the pair's next leg of directional move. From the US, new home sales data and revised UoM Consumer Sentiment index might also help traders to grab some short-term trading opportunities.

Technical levels to watch

Immediate support on the downside is seen near 1.3080-75 region below which the pair is likely to head towards 1.3025 horizontal support ahead of 1.30 psychological mark. On the upside, sustained recovery above session peak resistance near 1.3120 level could get extended towards 200-day SMA hurdle near 1.3145-50 region. On a convincing move above 200-day SMA barrier, the pair seems all set to aim back towards reclaiming 1.3200 round figure mark.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.3077

38% Bullish
50% Bearish
12% Sideways

Bias Bearish

1 Month

Avg Forecast 1.3201

54% Bullish
23% Bearish
23% Sideways

Bias Bullish

1 Quarter

Avg Forecast 1.3371

75% Bullish
25% Bearish
0% Sideways

Bias Bullish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD remains cautious near 1.1760 ahead of US data

EUR/USD trades marginally on the defensive at the end of the week, hovering around the 1.1770-1.1760 band against the backdrop of an equally humble advance in the US Dollar. Meanwhile, investors gear up for the release of key US data later in the day, including PCE and GDP figures.

GBP/USD looks slightly bid near 1.3480, focus on US docket

The British Pound gathers some fresh steam on Friday, prompting GBP/USD to reverse four consecutive days of losses and revisit the 1.3480 zone. Cable’s decent bounce comes on the back of modest gains in the Greenback prior to the release of significant US data.

Gold extends the recovery past $5,000/oz, looks at US data

Gold prices advance for the third straight day on Friday, reaching new multi-day highs just north of the key $5,000 mark per troy ounce. The continuation of the precious metal’s uptick follows steady geopolitical effervescence in the Middle East, while traders eagerly await key US data releases.

US GDP growth expected to slow down significantly in Q4 after stellar Q3

The United States Bureau of Economic Analysis will publish the first preliminary estimate of the fourth-quarter Gross Domestic Product at 13:30 GMT. Analysts forecast the US economy to have expanded at a 3% annualized rate, slowing down from the 4.4% growth posted in the previous quarter.

Week ahead – Markets brace for heightened volatility as event risk dominates

Dollar strength dominates markets as risk appetite remains subdued. A Supreme Court ruling, geopolitics and Fed developments are in focus. Pivotal Nvidia earnings on Wednesday as investors question tech sector weakness.

Official Trump price approaches breakout with mixed signals from traders

Official Trump (TRUMP) is trading at $3.50 at the time of writing, approaching its upper consolidation range. A breakout from this range could open the door for an upside move. On-chain data shows market indecision, with balanced flows between bulls and bears, signaling a lack of clear directional bias.