USD/CAD consolidates near multi-month tops, just below mid-1.3400s

USD/CAD continued gaining traction for the third consecutive session on Friday.
The ongoing slump in oil prices undermined the loonie and remained supportive.
Fed rate cut speculations weighed on the USD but did little to hinder the move.

Haresh Menghani FXStreet

The USD/CAD pair now seems to have entered a bullish consolidation phase and was seen oscillating in a narrow trading band, just below mid-1.3400s, or near nine-month tops.

The pair added to its recent strong gains and continued scaling higher for the third consecutive session on Friday on the back of a slump in crude oil prices, which undermined demand for the commodity-linked currency – the loonie.

USD/CAD remains well supported by tumbling oil prices

The bearish pressure surrounding the black gold remained unabated on the last trading day of the week amid growing market concerns over the fast-spreading coronavirus and its negative impact on the global economic outlook.

The ongoing bullish trajectory seemed rather unaffected by firming market expectations that the Fed will cut interest rate to offset any negative impact of the deadly virus on the domestic economy, which kept the US dollar bulls on the defensive.

The USD was further pressurised by a continuous slide in the US Treasury bond yields to allt-time lows. The combination of negative factors did little to hinder the pair's positive move, albeit might now keep a lid on any further gains.

Moving ahead, market participants now look forward to Friday's economic docket, highlighting the release of Canadian GDP report and some second-tier US macro data, in order to grab some meaningful short-term trading opportunities.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3438
Today Daily Change	0.0056
Today Daily Change %	0.42
Today daily open	1.3382

Trends
Daily SMA20	1.3278
Daily SMA50	1.3162
Daily SMA100	1.3178
Daily SMA200	1.3212

Levels
Previous Daily High	1.3384
Previous Daily Low	1.3316
Previous Weekly High	1.328
Previous Weekly Low	1.3202
Previous Monthly High	1.3255
Previous Monthly Low	1.29
Daily Fibonacci 38.2%	1.3358
Daily Fibonacci 61.8%	1.3342
Daily Pivot Point S1	1.3338
Daily Pivot Point S2	1.3293
Daily Pivot Point S3	1.3269
Daily Pivot Point R1	1.3406
Daily Pivot Point R2	1.3429
Daily Pivot Point R3	1.3474

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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