Extending Friday's sharp reversal from 1.2830 region, the USD/CAD pair maintained its strong bid tone and is continued building on to its gains above 1.3000 psychological mark to currently trade around 1.3015-20 band after the release of US economic data.
Today’s economic data released from the US, namely Core PCE Price Index, Personal Income and Spending data for July were in-line with estimates and had a little impact on market expectations of an eventual Fed rate-hike action.
Meanwhile, softer tone surrounding crude oil prices is also weighing on the commodity-linked currency, the Canadian Dollar and helping the pair to build on to its break-out momentum above 100-day SMA strong resistance.
Moving ahead, market participants now shift their focus to this week's keenly watched macro indicator from the US, monthly jobs report, popularly known as NFP, in order to evaluate the possibilities of a September Fed-rate hike decision, which would provide an additional leg of up-move for the greenback and continue driving the major higher.
Technical levels to watch
From current levels, 200-day SMA near 1.3060-65 region seems is likely to act as immediate strong resistance above which the pair seems all set to extend its appreciating move beyond 1.3100 handle, towards testing monthly high resistance near 1.3190 level. On the flip side, weakness below 1.3000 handle, leading to a subsequent break below 1.2980 support, might now find strong support at 100-day SMA resistance break point near 1.2930-25 region.
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.
Recommended content
Editors’ Picks
AUD/USD eases toward 0.6500 after mixed Australian trade data
AUD/USD is seeing some fresh selling interest in the Asian session on Thursday, following the release of mixed Australian trade data. The pair has stalled its recovery mode, as the US Dollar attempts a bounce after the Fed-led sell-off.
USD/JPY rebounds above 156.00 after probable Japan's intervention-led crash
USD/JPY is staging a solid comeback above 156.00, having lost nearly 450 pips in some minutes after the Japanese Yen rallied hard on another suspected Japan FX market intervention in the late American session on Wednesday.
Gold price stalls rebound below $2,330 as US Dollar recovers
Gold price is holding the rebound below $2,330 in Asian trading on Thursday, as the US Dollar recovers in sync with the USD/JPY pair and the US Treasury bond yields, in the aftermath of the Fed decision and the likely Japanese FX intervention.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
The FOMC whipsaw and more Yen intervention in focus
Market participants clung to every word uttered by Chair Powell as risk assets whipped around in a frenetic fashion during the afternoon US trading session.