USD/CAD climbs to mid-1.3300s amid sliding Oil prices, modest USD uptick ahead of NFP

USD/CAD gains traction for the second straight day and is supported by a combination of factors.
Sliding Crude Oil prices undermines the Loonie and acts as a tailwind amid a modest USD strength.
Traders now look forward to the closely-watched US monthly jobs data (NFP) for a fresh impetus.

Haresh Menghani FXStreet

The USD/CAD pair gains positive traction for the second successive day on Friday and looks to build on the overnight recovery move from the 1.3280 region, or its lowest level since November 16. Spot prices stick to modest intraday gains, around the 1.3345-1.3350 area through the early European session and draw support from a combination of factors.

Crude Oil prices prolong the recent rejection slide from the 100-day SMA hurdle and drop to a nearly four-week low on the last day of the week. The uncertainty over a strong economic recovery in China weighs on the outlook for fuel demand and exerts pressure on the black liquid. This, in turn, is seen undermining the commodity-linked Loonie, which, along with a modest US Dollar strength, lends support to the USD/CAD pair.

The US Weekly Initial Jobless Claims released on Thursday pointed to the underlying strength in the labor market and raises the possibility of strong Nonfarm Payrolls (NFP) data. Furthermore, the upbeat US macro data forces investors to re-evaluate their expectations for future rate hikes by the Fed. Apart from this, the prevalent cautious mood lends support to the safe-haven buck and remains supportive of the USD/CAD pair's uptick.

The global flight to safety, meanwhile, exerts some downward pressure on the US Treasury bond yields, which, in turn, acts as a headwind for the USD. Traders also refrain from placing aggressive bets and prefer to wait on the sidelines ahead of the release of the closely-watched US monthly jobs report which may be a deciding factor for the trend, which is due later during the early North American session. This, along with Oil price dynamics should provide a fresh impetus to the USD/CAD pair.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3339
Today Daily Change	0.0026
Today Daily Change %	0.20
Today daily open	1.3313

Trends
Daily SMA20	1.3383
Daily SMA50	1.3498
Daily SMA100	1.3532
Daily SMA200	1.3219

Levels
Previous Daily High	1.3348
Previous Daily Low	1.3262
Previous Weekly High	1.3428
Previous Weekly Low	1.33
Previous Monthly High	1.3685
Previous Monthly Low	1.33
Daily Fibonacci 38.2%	1.3315
Daily Fibonacci 61.8%	1.3295
Daily Pivot Point S1	1.3268
Daily Pivot Point S2	1.3222
Daily Pivot Point S3	1.3183
Daily Pivot Point R1	1.3353
Daily Pivot Point R2	1.3393
Daily Pivot Point R3	1.3438

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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