USD/CAD bears flirt with 1.2300 amid mixed catalysts, quiet markets


  • USD/CAD holds lower ground in a 10-pips range after two-day downtrend.
  • Traders remain indecisive as WTI pullback jostles with risk-on mood.
  • Canadian Retail Sales, US PMIs will be the key to follow.

USD/CAD seesaws in a choppy range above 1.2300, recently easing to 1.2307, amid a quiet Asian session on Wednesday. The Loonie pair dropped for the last two days amid a pullback in the US dollar. Though, the latest consolidation of oil price gains probes the pair sellers amid a lack of direction, as well as mixed sentiment ahead of the second-tier data.

With the Fed policymakers stepping back on the bullish rhetoric, marked last week, fears of tapering and rate hikes wane of late, which in turn improves the market’s risk appetite. While Fed Chairman Jerome Powell matched expectations of citing employment as the reason to keep easy money policy rolling, others from the clan, namely Cleveland Fed President Loretta Mester and New York Fed President John Williams were also against policy adjustments for now. The risk-on mood trimmed the US dollar’s gains and favored commodity-linked currencies like the Canadian dollar (CAD).

However, the pullback in oil prices from the highest since October 2018, mainly backed by concerns of OPEC+ weighing an increase in output and lesser-than-previous inventory draw,  probed USD/CAD sellers of late. It’s worth noting that Tuesday’s mixed economics from the US and the chatters over an extension to the American land border with Canada and Mexico couldn’t offer any strong directives to the quote.

Against this backdrop, Wall Street closed higher and the US Treasury yields dropped, taking the US dollar index (DXY) down before S&P 500 Futures struggled for clear direction.

Amid a lack of major data/events, USD/CAD may remain indecisive ahead of Canada Retail Sales for April, expected -5.0% versus +3.6% prior, as well as the preliminary readings of the US PMIs for June. As scheduled numbers favor mixed outcomes, the quote may have to rely on the risk catalysts and oil moves for fresh impetus.

Technical analysis

Multiple lows marked from early May around 1.2265 can please short-term USD/CAD sellers ahead of testing them with a 50-day SMA level of 1.2224. Meanwhile, March’s low of 1.2365 and 100-day SMA near 1.2415 may entertain buyers before directing them to the recent peak of 1.2487. It’s worth noting that firmer RSI and bullish MACD signals back the pair buyers.

Additional important levels

Overview
Today last price 1.2309
Today Daily Change -52 pips
Today Daily Change % -0.42%
Today daily open 1.2361
 
Trends
Daily SMA20 1.2152
Daily SMA50 1.2233
Daily SMA100 1.2424
Daily SMA200 1.2708
 
Levels
Previous Daily High 1.2487
Previous Daily Low 1.2353
Previous Weekly High 1.2481
Previous Weekly Low 1.2128
Previous Monthly High 1.2352
Previous Monthly Low 1.2013
Daily Fibonacci 38.2% 1.2404
Daily Fibonacci 61.8% 1.2436
Daily Pivot Point S1 1.2314
Daily Pivot Point S2 1.2267
Daily Pivot Point S3 1.218
Daily Pivot Point R1 1.2447
Daily Pivot Point R2 1.2534
Daily Pivot Point R3 1.2581

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains depressed below 1.1850 after the Fed's taper talk

EUR/USD is trading under 1.1850, hit by hawkish comments by the Fed's Clarida and Daly. The bank is nearing tapering its bond-buying scheme, a move that could happen this year. US jobless claims and a speech from the Fed's Waller are eyed.

EUR/USD News

GBP/USD flirts with 1.3900 ahead of the BOE's Super Thursday

GBP/USD is licking its wounds around 1.3900 ahead of the BOE’s Super Thursday rate decision in which it also releases new forecasts. Declining covid cases are supporting sterling while hawkish comments from the Fed's Clarida are boosting the dollar.

GBP/USD News

XAU/USD off highs, steady around $1810 ahead of BOE, US data

Gold price is trading almost unchanged on the day, unable to hold at higher levels, despite the latest pullback in the US dollar across the board. The cautious tone across the European markets fuelled the risk-off flows in the US Treasuries, downing the yields alongside the dollar.

Gold News

Cryptocurrency markets make comeback as BTC bulls resurface

Bitcoin price taking a second attempt at an upswing to retest $42,451. Ethereum price has flipped a crucial resistance level at $2,640 into a support barrier.

Read more

Bank of England Preview: Five reasons the doves are set to win Super Thursday

An epic battle between hawks and doves on Super Thursday? That is a dramatic way to view the Bank of England's upcoming rate decision – yet there are good reasons to expect doves to carry the day. That would send sterling down. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures