USD/CAD erases gains amid higher Oil & bearish DXY

Dhwani Mehta FXStreet

The Canadian dollar is trying hard to fight back control versus its Canadian counterpart in early Europe, with USD/CAD surrendering all of its gains and now moves further away from three-week tops

USD/CAD comes down to test 5-DMA

Currently, the USD/CAD pair is last seen exchanging hands at 1.3365, almost unchanged on the day, reversing a spike from daily highs of 1.3383. The major appears to have stalled its latest down move, although remains on the offers, as the Loonie finds support from higher oil prices, in wake of bigger-than expected drop in the US crude stockpiles.

While broad based USD correction from multi-year tops also keeps the bulls at bay, driving USD/CAD back in the red zone. Later today, the US docket offers the existing home sales data, while tomorrow’s Canadian CPI and retail sales data alongside the US GDP figures will provide next direction on the major.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3383 (daily high) and 1.3419 (daily R1) and from there to 1.3436 (3-week tops). To the downside, immediate support might be located at 1.3315 (Dec 19 low) and below that at 1.3300 (round figure) and at 1.3283 (10-DMA).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities 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.