USD/CAD clings to gains above 1.40 post-Canadian retail sales


  • USD/CAD gained some follow-through traction for the second straight session on Friday.
  • A strong pickup in the USD demand remained supportive amid a sharp fall in oil prices.
  • Friday’s release of Canadian monthly retail sales did little to provide any fresh impetus.

The USD/CAD pair maintained its strong bid tone through the early North American session and held steady above the key 1.40 psychological mark post-Canadian macro data.

The pair gained some follow-through traction for the second straight session on Friday and built on the previous day's goodish recovery move from the vicinity of three-week lows set on Tuesday. The momentum was supported by a combination of factors, including a goodish pickup in the US dollar demand and a sharp fall in crude oil prices.

Concerns over a further escalation in diplomatic tensions between the United States and China took its toll on the global risk sentiment. This was evident from a weaker tone surrounding the global equity markets, which forced investors to take refuge in the safe-haven US dollar.

On the other hand, a fresh leg down in crude oil prices undermined demand for the commodity-linked currency – the loonie – and remained supportive of the strong bid tone surrounding the USD/CAD pair. The Canadian dollar failed to gain any respite from Friday's release of Canadian monthly retail sales, which declined by 10% in March.

From a technical perspective, some follow-through buying above the 1.4050-60 region might be seen as a fresh trigger for bullish traders and set the stage for a further near-term appreciating move. The pair might then aim towards surpassing the 1.4090-1.4100 heavy supply zone.

Technical levels to watch

USD/CAD

Overview
Today last price 1.4023
Today Daily Change 0.0068
Today Daily Change % 0.49
Today daily open 1.3955
 
Trends
Daily SMA20 1.4016
Daily SMA50 1.4085
Daily SMA100 1.367
Daily SMA200 1.3442
 
Levels
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

 

 

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