USD/CAD extends losses, approaching 1.3500 ahead of Powell

The US Dollar drops further as US PCE confirms the disinflationary trend.
All eyes today are on Fed Powell's conference.
Soft Canadian data and lower oil prices are likely to weigh on the CAD.

Guillermo Alcala FXStreet

The US Dollar was rejected at the 1.3625 resistance area on Thursday and resumed its broader downtrend against its Canadian counterpart reaching two-month lows near 1.3500 so far.

Lower inflation hints at end of the Fed's hiking cycle

US PCE Prices Index data released on Thursday endorsed the lower inflation and softer macroeconomic scenario seen over the last week. This has boosted confidence that the Fed has reached its terminal rate and is acting as a headwind for US Dollar bulls.

Later today, Chairman Powell and other US Fewd officials are hitting the press and their comments will be observed with special interest. Any signal towards a dovish turn on the bank’s forward guidance is likely to increase bearish pressure on the pair.

In Canada November’s employment figures are expected to show that the labour market is softening, which, coupled with the weak GDP data seen on Thursday and the lower oil prices might keep CAD upside attempts limited.

Technical indicators are negative with the RSI still above oversold levels. The next supports are 1.3500 and the September 29 low at 1.3420. On the upside, resistances are at the mentioned 1.3615 and 1.3700.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3522
Today Daily Change	-0.0047
Today Daily Change %	-0.35
Today daily open	1.3569

Trends
Daily SMA20	1.3699
Daily SMA50	1.3685
Daily SMA100	1.356
Daily SMA200	1.3518

Levels
Previous Daily High	1.3627
Previous Daily Low	1.3552
Previous Weekly High	1.3766
Previous Weekly Low	1.3594
Previous Monthly High	1.3899
Previous Monthly Low	1.3541
Daily Fibonacci 38.2%	1.3581
Daily Fibonacci 61.8%	1.3598
Daily Pivot Point S1	1.3539
Daily Pivot Point S2	1.3508
Daily Pivot Point S3	1.3464
Daily Pivot Point R1	1.3613
Daily Pivot Point R2	1.3657
Daily Pivot Point R3	1.3687

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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.