USD/CAD consolidates in a range below 1.2400 mark

USD/CAD remained confined in a range through the first half of the trading action on Tuesday.
Retreating oil prices undermined the loonie and extended some support amid stronger USD.
The fundamental backdrop supports prospects for an extension of the recent recovery move.

Haresh Menghani FXStreet

The USD/CAD pair lacked any firm directional bias on Tuesday and oscillated in a narrow trading band, below the 1.2400 mark through the early European session.

The pair, so far, has struggled to capitalize its recent bounce from four-month lows touched last week and remained capped near the 1.2400 mark, though a combination of factors acted as a tailwind. A modest pullback in crude oil prices from multi-year tops undermined the commodity-linked loonie. This, along with a pickup in the demand for the US dollar, extended some support to the USD/CAD pair.

The USD drew some support from the emergence of heavy selling around the shared currency. This comes amid expectations for an early policy tightening by the Fed, which further assisted the buck to build on the overnight rebound from one-month lows. The Fed Chair Jerome Powell reiterated on Friday that the US central bank remains on track to begin rolling back its massive pandemic-era stimulus.

Moreover, the recent widespread rally in commodity prices has been fueling speculations about a potential interest rate hike in 2022. Investors now seem convinced that the Fed would be forced to adopt a more aggressive policy response to contain stubbornly high inflation. Nevertheless, the fundamental backdrop favours bulls and supports prospects for some meaningful appreciating move for the USD/CAD pair.

Market participants now look forward to the US economic docket – featuring the releases of the Conference Board’s Confidence Index, Richmond Manufacturing Index and New Home Sales. This, along with the US bond yields and the broader market risk sentiment, might influence the USD. Traders will further take cues from oil price dynamics for some short-term impetus around the USD/CAD pair.

Technical levels to watch

USD/CAD

Overview
Today last price	1.2385
Today Daily Change	0.0002
Today Daily Change %	0.02
Today daily open	1.2383

Trends
Daily SMA20	1.2493
Daily SMA50	1.2597
Daily SMA100	1.2518
Daily SMA200	1.2496

Levels
Previous Daily High	1.24
Previous Daily Low	1.2338
Previous Weekly High	1.241
Previous Weekly Low	1.2288
Previous Monthly High	1.2896
Previous Monthly Low	1.2494
Daily Fibonacci 38.2%	1.2377
Daily Fibonacci 61.8%	1.2362
Daily Pivot Point S1	1.2348
Daily Pivot Point S2	1.2312
Daily Pivot Point S3	1.2286
Daily Pivot Point R1	1.2409
Daily Pivot Point R2	1.2436
Daily Pivot Point R3	1.2471

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD off highs, back to 1.1850

EUR/USD loses some upside momentum, returning to the 1.1850 region amid humble losses. The pair’s slight decline comes against the backdrop of a marginal advance in the US Dollar as investors continue to assess the latest US CPI readings.

GBP/USD advances to daily tops around 1.3650

GBP/USD now manages to pick up extra pace, clinching daily highs around 1.3650 and leaving behind three consecutive daily pullbacks on Friday. Cable’s improved sentiment comes on the back of the inconclusive price action of the Greenback, while recent hawkish comments from the BoE’s Pill also collaborates with the uptick.

Gold surpasses $5,000/oz, daily highs

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The yellow metal’s upside is also propped up by the lack of clear direction around the US Dollar post-US CPI release.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.