USD/CAD bounces off lows, finds some support near 1.3300 handle


  • A modest pickup in the USD demand helped bounce off lows.
  • Oil prices retreat from tops and lend some additional support.
  • Move beyond 100-DMA needed to confirm any additional gains.

The USD regained some positive traction in the last hour, helping the USD/CAD pair to quickly recovery around 20-pips from daily lows.

Having failed to capitalize on this week's goodish rebound from multi-month lows, the pair started retreating from 100-day SMA barrier and snapped three consecutive days of winning streak on Thursday.

A solid rebound in Crude Oil prices, surging over 4.0% intraday, provided a strong boost to the commodity-linked currency - Loonie and turned out to be one of the key factors weighing heavily on the major.

Oil prices rallied hard on Thursday in reaction to suspected attacks on two tankers in the Gulf of Oman, which raised concerns over potential disruptions to Oil flows and largely offset increasing US inventories.

Oil prices trimmed a part of the early strong gains, which coupled with a pickup in the US Dollar demand during the early North-American session helped the pair to find decent support near the 1.3300 handle.

The incoming softer US macro data - Wednesday's US consumer inflation being the latest, continued reinforcing market expectations that the Fed will be forced to cut interest rates by the end of this year. 

However, the fact that such a move is already priced in, market participants seemed reluctant to place any aggressive USD bearish bets, rather preferred to cover their short positions heading into next week's FOMC meeting.

It would now be interesting to see if the pair is able to build on the intraday rebound or continues with its struggle to make it back above 100-DMA hurdle as the focus now shifts to Friday's US monthly retail sales data.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3321
Today Daily Change -0.0023
Today Daily Change % -0.17
Today daily open 1.3344
 
Trends
Daily SMA20 1.3417
Daily SMA50 1.3413
Daily SMA100 1.3348
Daily SMA200 1.3279
Levels
Previous Daily High 1.3346
Previous Daily Low 1.3274
Previous Weekly High 1.3529
Previous Weekly Low 1.3262
Previous Monthly High 1.3566
Previous Monthly Low 1.3357
Daily Fibonacci 38.2% 1.3318
Daily Fibonacci 61.8% 1.3301
Daily Pivot Point S1 1.3296
Daily Pivot Point S2 1.3249
Daily Pivot Point S3 1.3224
Daily Pivot Point R1 1.3368
Daily Pivot Point R2 1.3393
Daily Pivot Point R3 1.344

 

 

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