• USD preserves FOMC minutes-led strong gains.
• CAD weighed down by weaker oil prices.
• Canadian retail sales data eyed for fresh impetus.
The USD/CAD pair extended its consolidative price action and was seen oscillating within a narrow trading band around the 1.2700 handle, or near two-month tops.
The pair swung from an intraday low level of 1.2625, touched in reaction to the latest FOMC meeting minutes, and rallied over 75-pips after details revealed that policymakers supported the need to keep raising interest rates.
With the US Dollar managing to preserve its recent gains, a fresh wave of selling pressure around crude oil prices weighed on the commodity-linked currency - Loonie and remained supportive of the pair’s upbeat tone through the early European session.
It, however, remains to be seen if bulls are able to build on the momentum or continue facing difficulty in breaking through the key 200-day SMA barrier, currently near the 1.2715-20 region.
On the economic data front, today's important release of the key Canadian monthly retail sales, along with the usual weekly jobless claims data from the US would now be looked upon for some fresh impetus. Later in the day, the weekly EIA US crude oil inventories data would also influence the pair's momentum and help grab short-term trading opportunities.
Technical levels to watch
A decisive move beyond the 1.2715-20 barrier (200-DMA) now seems to pave the way for an extension of the pair's bullish trajectory towards the 1.2790-1.2800 supply zone. On the flip side, any meaningful retracement is likely to find support near mid-1.2600s and is closely followed by 100-day SMA support near the 1.2625-20 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
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.