USD/CAD declines to 1.3535 and consolidates below the 20-day SMA


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  • USD/CAD tallies a four-day losing streak, trading at 1.3545. 
  • Higher energy prices contributed to an acceleration of the US CPI in August.
  • Fed tightening expectations remain steady.
  • Higher Oil prices favour the CAD.

The USD/CAD continued its downward path on Wednesday, tallied a more than 1% decline in the last four days, and traded at the 1.3585 - 1.3520 range. On the USD side, the Greenback is holding its foot after the release of inflation figures as investors are still placing bets on one last hike by the Federal Reserve (Fed) in 2023. On the other hand, the CAD trades strong, mainly driven by higher Oil prices that rose to highs since November on Tuesday.

On the data front, the US Headline Consumer Price Index (CPI) rose to 3.7%, higher than the previous 3.2% and the expected figure of 3.6%, and the US Bureau of Labor Statistics (BLS) reported that an increase in energy prices drove the rise. On a positive note, the sticky Core measure eased to 4.3% from its previous reading of 4.7%, matching the expectations.

All eyes are now on Thursday's Produce Price Index (PPI) figures from the US, which is expected to accelerate to 1.2% YoY from its previous 0.8%. Retail sales from the same month will also be closely watched. As for now, the CME FedWatch tool indicates the case of one last 25 basis point hike by the Federal Reserve (Fed) remains strong as investors discount nearly 40% odds of possibilities. In line with that, hawkish bets may cushion the USD’s losses. 

USD/CAD Levels to watch 

 Analysing the daily chart, the technical outlook for the USD/CAD remains neutral to bearish as the bears continue to show signs of gaining ground. With a negative slope below its midline, the Relative Strength Index (RSI) signals a bearish sentiment, while the Moving Average Convergence (MACD) histogram shows increasing red bars.

 Support levels: 1.3520, 1.3500, 1.3490.

 Resistance levels: 1.3576 (20-day SMA), 1.3600, 1.3630.

USD/CAD Daily Chart

USD/CAD

Overview
Today last price 1.3546
Today Daily Change -0.0008
Today Daily Change % -0.06
Today daily open 1.3554
 
Trends
Daily SMA20 1.3577
Daily SMA50 1.3401
Daily SMA100 1.3405
Daily SMA200 1.3467
 
Levels
Previous Daily High 1.3593
Previous Daily Low 1.3544
Previous Weekly High 1.3694
Previous Weekly Low 1.3576
Previous Monthly High 1.364
Previous Monthly Low 1.3184
Daily Fibonacci 38.2% 1.3563
Daily Fibonacci 61.8% 1.3574
Daily Pivot Point S1 1.3534
Daily Pivot Point S2 1.3514
Daily Pivot Point S3 1.3484
Daily Pivot Point R1 1.3583
Daily Pivot Point R2 1.3613
Daily Pivot Point R3 1.3633

 

 

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