USD/CAD extends slide below 1.3100 to lowest in 12 weeks

The Canadian dollar is among the top performers on Friday.
USD/CAD drops despite dollar’s strength on the back of positive US data.
Crude oil prices bounce back above $54.00.

Matías Salord FXStreet

The USD/CAD pair broke below the key 1.3115/20 support area and tumbled to 1.3082, the lowest level since November 7. The pair resumed the move lower that started early January from above 1.3600.

The Loonie is among the top performers on Monday supported by technicals and also by higher crude oil prices. The WTI is up 1.50%, back above $54.50. Crude oil continues to be supported by production cuts and the Venezuelan crisis.

Regarding the greenback, data released today from the US showed better-than-expected numbers from the labor market and also the manufacturing sector, but inflation indicators remained low, in line with the FOMC tone of the last meeting. The US dollar is posting mix results across the board, rising sharply versus the yen amid higher US yields.

Levels to watch

To the downside, the immediate support is seen at 1.3080, followed by 1.3050 and 1.3020. Now the 1.3115 region has become the key short-term resistance followed by 1.3160 and above 1.3195/1.3200. If the US dollar manages to rise back on top of 1.3200 it would remove the bearish pressure and could point to a correction.

USD/CAD

Overview:
    Today Last Price: 1.3095
    Today Daily change: -0.0044 pips
    Today Daily change %: -0.33%
    Today Daily Open: 1.3139
Trends:
    Daily SMA20: 1.3272
    Daily SMA50: 1.3377
    Daily SMA100: 1.3218
    Daily SMA200: 1.3128
Levels:
    Previous Daily High: 1.3166
    Previous Daily Low: 1.312
    Previous Weekly High: 1.3378
    Previous Weekly Low: 1.3224
    Previous Monthly High: 1.3664
    Previous Monthly Low: 1.3118
    Daily Fibonacci 38.2%: 1.3138
    Daily Fibonacci 61.8%: 1.3149
    Daily Pivot Point S1: 1.3117
    Daily Pivot Point S2: 1.3096
    Daily Pivot Point S3: 1.3071
    Daily Pivot Point R1: 1.3163
    Daily Pivot Point R2: 1.3187
    Daily Pivot Point R3: 1.3209

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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