USD/CAD: Bulls aim to regain 1.4000 amid fresh risk aversion, Canada Retail Sales in focus

  • USD/CAD refreshes intraday high to 1.3970, prints two-day winning streak.
  • US dollar extends recovery as the US-China tussle intensifies.
  • WTI pullback from 10-week top amid fresh risk-off and challenges to demand.
  • Canadian Retail Sales will decorate the calendar, US-China tension will be the key.

USD/CAD takes the bids to 1.3978, up 0.16% on a day, during the initial trading hours of Friday. The Loonie pair recently gained bids as updates from China’s 13th National People's Congress (NPC) heavy the risks and offer additional strength to the US dollar. Also, the downbeat comments weigh on the crude oil, Canada’s main export, which in turn adds strength to the pair.

By citing the coronavirus (COVID-19) as the key reason for not providing the year 2020’s GDP target, Chinese diplomats triggered speculations that the dragon nation still fears the worrisome outcome of the pandemic.

Additionally, updates from the NPC suggest that Chinese policymakers are edging closer to tighten their grip over Hong Kong. The issue has recently been in the spotlight after the US policymakers showed readiness to make sure that Hong Kong is free from the dragon nation’s pressure.

Before a few days, concerns mounted that the Asian major is back to its pre-crisis level, as per the crude demand, which set the floor for the WTI benchmark’s fresh run-up. That said, the black gold drops to $33.32, down 1.90%, by the press time.

Elsewhere, the US dollar stretches Thursday’s recovery moves amid the fresh risk-off sentiment. That said, the US dollar index (DXY), the gauge of the greenback versus major currencies, register 0.10% gains to 99.50 as we write.

Moving on, Canada’s April monthly Retail Sales, expected to drop 10.0% on MoM basis versus +0.3% prior, can occupy the mostly light economic calendar while updates from China and/or concerning the US-China tussle will be the key for fresh direction.

Technical analysis

Successful recovery beyond 50-day EMA, at 1.3950 now, propels the quote towards 1.4000 round-figures ahead of highlighting May 14 top near 1.4140. Alternatively, the pair’s drop below 1.3950 can refresh the monthly low well under the current bottom around 1.3865.

Additional important levels

Today last price 1.3978
Today Daily Change 23 pips
Today Daily Change % 0.16%
Today daily open 1.3955
Daily SMA20 1.4016
Daily SMA50 1.4085
Daily SMA100 1.367
Daily SMA200 1.3442
Previous Daily High 1.3971
Previous Daily Low 1.3891
Previous Weekly High 1.4141
Previous Weekly Low 1.3901
Previous Monthly High 1.4299
Previous Monthly Low 1.385
Daily Fibonacci 38.2% 1.394
Daily Fibonacci 61.8% 1.3922
Daily Pivot Point S1 1.3908
Daily Pivot Point S2 1.386
Daily Pivot Point S3 1.3828
Daily Pivot Point R1 1.3987
Daily Pivot Point R2 1.4018
Daily Pivot Point R3 1.4066



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD: Bounces off one-week low on Powell-Mnuchin comments, eyes RBA

AUD/USD probes pullback from multi-month high ahead of the key data/events. Fed Chair Powell conveys economic worries, US Treasury Secretary Mnuchin pushes for stimulus. Risks dwindle amid economic fears, uncertainty over the US covid aid package.


Gold: Wobbles near five-month low below $1,800 as Powell, Mnuchin weigh on risks

Gold prices seesaw around $1,77/78 during the early Tuesday morning in Asia. The yellow metal dropped to the lowest since July the previous day before bouncing off $1,764.73. Economic fears, need for stimulus raise bars for the bull’s entry.

Gold news

EUR/USD retreats after its first attempt to break above 1.2000

EUR/USD trades around 1.1940 after failing to break above the psychological threshold. Bulls retain control and would likely challenge the level once again.


WTI holds $45 as OPEC+ postpones output cut decision to Thursday

WTI keeps recovery moves from $44.51 despite multiple failures to regain $46.00. The oil benchmark dropped to the one week low on the previous day amid the US dollar recovery.

Oil News

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info