USD/CAD extends slide toward 1.3200, remains on track to finish week in red


  • WTI erases portion of early losses, trades above $53.
  • US Dollar Index drops below 99.30 after dismal PMI data.
  • Retail Sales in Canada stayed unchanged in December.

The heavy selling pressure surrounding the greenback and a modest rebound seen in crude oil prices caused the USD/CAD pair to slide toward the 1.3200 handle on Friday. As of writing, the pair was down 0.35% on a daily basis at 1.3213 and was looking to close the second straight week in the negative territory.

Earlier in the day, the data published by Statistics Canada showed Retail Sales in December stayed unchanged after rising 1.1% in November and fell short of the market expectation for an increase of 0.1%. 

USD weakens after dismal PMI data

However, with the preliminary February PMI data from the US coming in much worse than expected, the USD selloff intensified and allowed the CAD to outperform the USD. 

The IHS Markit's Manufacturing PMI in February slumped to 50.8 from 51.9 and the Services PMI dropped to 49.4 to show contraction in the service sector's economic activity for the first time in four years. The US Dollar Index, which touched its highest level since April 2017 at 99.91 on Thursday, fell sharply during the American trading hours and was last seen down 0.6% on the day at 99.28.

Meanwhile, the West Texas Intermediate (WTI) staged a modest rebound after Saudi Arabia's energy minister denied The Wall Street Journal report claiming that Saudi Arabia was considering to break the OPEC+ alliance with Russia and helped the commodity-related CAD preserve its strength. At the moment, the barrel of WTI is trading at $53.40, still down 0.55% on the day.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3206
Today Daily Change -0.0054
Today Daily Change % -0.41
Today daily open 1.326
 
Trends
Daily SMA20 1.3247
Daily SMA50 1.3147
Daily SMA100 1.3179
Daily SMA200 1.3215
 
Levels
Previous Daily High 1.327
Previous Daily Low 1.3212
Previous Weekly High 1.333
Previous Weekly Low 1.3236
Previous Monthly High 1.3255
Previous Monthly Low 1.29
Daily Fibonacci 38.2% 1.3247
Daily Fibonacci 61.8% 1.3234
Daily Pivot Point S1 1.3224
Daily Pivot Point S2 1.3189
Daily Pivot Point S3 1.3166
Daily Pivot Point R1 1.3282
Daily Pivot Point R2 1.3305
Daily Pivot Point R3 1.334

 

 

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