USD/CAD drops back closer to weekly lows, below mid-1.3200s post-Canadian CPI

Haresh Menghani FXStreet

• Hotter than expected Canadian CPI figures lift the domestic currency.
• Goodish pickup in oil prices provides an additional boost to the Loonie.
• The USD remains on the defensive and does little to lend any support.

The USD/CAD pair quickly reversed an uptick to 1.3280 area and tumbled around 50-pips in reaction to the latest Canadian inflation figures.

Data released on Friday showed Canadian headline CPI declined less than expected, 0.1% m/m in December, with the yearly rate unexpectedly rising to the official target of 2%.

The against the backdrop of goodish up-move in crude oil prices provided a strong lift to the commodity-linked currency - Loonie and prompted some aggressive selling in the last hour.

Meanwhile, a subdued US Dollar price action did little to lend any support and stall the pair's sudden decline to an intraday low level of 1.3231, back closer to weekly lows set on Tuesday.

It would now be interesting to see if the pair is able to find any decent buying interest at lower levels or bears regain control amid absent relevant market moving economic releases from the US.

Technical levels to watch

USD/CAD

Overview:
    Today Last Price: 1.3248
    Today Daily change: -25 pips
    Today Daily change %: -0.196%
    Today Daily Open: 1.3274
Trends:
    Daily SMA20: 1.3464
    Daily SMA50: 1.3367
    Daily SMA100: 1.32
    Daily SMA200: 1.3097
Levels:
    Previous Daily High: 1.332
    Previous Daily Low: 1.3248
    Previous Weekly High: 1.339
    Previous Weekly Low: 1.318
    Previous Monthly High: 1.4134
    Previous Monthly Low: 1.316
    Daily Fibonacci 38.2%: 1.3293
    Daily Fibonacci 61.8%: 1.3276
    Daily Pivot Point S1: 1.3242
    Daily Pivot Point S2: 1.3209
    Daily Pivot Point S3: 1.317
    Daily Pivot Point R1: 1.3314
    Daily Pivot Point R2: 1.3353
    Daily Pivot Point R3: 1.3386

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 trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.