USD/CAD bounces off 1-month lows, still in the red around 1.3170 region

USD/CAD meets with some fresh supply on Friday and fell to over 1-month lows.
Bullish oil prices underpinned the loonie while surging GBP weighed on the USD.
Market participants look forward to the US retail sales data for a fresh impetus.

Haresh Menghani FXStreet

The USD/CAD pair now seems to have entered a bearish consolidation phase and was seen oscillating in a narrow trading band just above one-month lows set earlier.

The pair failed to capitalize on the previous session's attempted recovery move and met with some fresh supply during the Asian session on Friday amid renewed selling bias surrounding the US dollar, primarily on the back of a strong upsurge in the British pound.

Weighed down by weaker USD, bullish oil prices

Apart from the USD weakness, the prevalent bullish sentiment surrounding crude oil prices underpinned the commodity-linked currency – loonie and further collaborated to the pair's early decline to mid-1.3100s – the lowest level since November 6.

Meanwhile, a fresh wave of the global risk-on trade, triggered by the latest optimism over the US-China “phase-one” deal, was further reinforced by some follow-through pickup in the US Treasury bond yields, which seemed to be the only factor lending some support to the USD.

The pair has managed to rebound around 15-20 pips from daily lows, albeit lacked any strong follow-through recovery. Market participants now look forward to the release of the US retail sales data for some meaningful impetus on the last trading day of the week.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3166
Today Daily Change	-0.0014
Today Daily Change %	-0.11
Today daily open	1.318

Trends
Daily SMA20	1.3253
Daily SMA50	1.3211
Daily SMA100	1.3233
Daily SMA200	1.3277

Levels
Previous Daily High	1.3194
Previous Daily Low	1.3162
Previous Weekly High	1.3322
Previous Weekly Low	1.3158
Previous Monthly High	1.3328
Previous Monthly Low	1.3114
Daily Fibonacci 38.2%	1.3174
Daily Fibonacci 61.8%	1.3182
Daily Pivot Point S1	1.3163
Daily Pivot Point S2	1.3146
Daily Pivot Point S3	1.313
Daily Pivot Point R1	1.3196
Daily Pivot Point R2	1.3212
Daily Pivot Point R3	1.3229

Author

Haresh Menghani

FXStreet

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

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