USD/CAD finds support at 1.2315 and returns to 1.2350 area

The dollar bounces up from multi-month lows at 1.2310.
The pause on US bond yield's rally has weighed on the greenback.
USD/CAD might reach 1.22 by year-end – Scotiabank.

Guillermo Alcala FXStreet

The US dollar is trimming losses against its Canadian counterpart after having bottomed at 3, ½-month lows at 1.2310 earlier on Wednesday. The pair has returned to 1.2350, yet still about 0.25% down on the day.

The USD dips again as US yields’ rally stalls

The greenback has given away the mild recovery posted on Monday, weighed by a pause on US T-Bond yields’ rally and a higher appetite for risk. US yields have stalled near multi-year highs on Tuesday, after having surged over the last two weeks, with the investors positioning for an imminent announcement of QE tapering by the Federal Reserve.

Additionally, the better than expected earnings reports by Johnson & Johnson and Travellers have improved the market mood. These figures follow a string of bright results in the financial sector last week, to boost appetite for risk, weighing on demand for the safe-haven USD.

On a broader picture, the commodity-sensitive Canadian dollar remains buoyed by the solid rally on crude prices. The US benchmark WTI oil is trading at multi-year highs, beyond $83, which has pushed the CAD nearly 4% higher against the greenback over the last four weeks.

Macroeconomic data has not been of any help to the USD either, US building activity contracted unexpectedly in September, revealing that shortages in raw materials and labor are starting to squeeze the sector, and triggering concerns about its potential impact on the economic growth. Housing starts declined 1.6% in September, and August’s reading has been revised down to a 1.2% growth from the 3.9% previously estimated.

USD/CAD: Seen at 1.2200 ahead of the year-end – Scotiabank

From a technical perspective, the FX Analysis Team at Scotiabank observe further downside potential in the pair: “If the USD manages to steady around 1.2365/70 into this week, a modest correction could develop. We expect USD gains to remain limited to the low/mid 1.24s, however, with daily and weekly trend momentum signals aligned bearishly for the USD (…) We think USD/CAD can print a 1.22 handle ahead of year-end.”

Technical levels to watch

USD/CAD

Overview
Today last price	1.2359
Today Daily Change	-0.0021
Today Daily Change %	-0.17
Today daily open	1.238

Trends
Daily SMA20	1.258
Daily SMA50	1.2614
Daily SMA100	1.2504
Daily SMA200	1.2505

Levels
Previous Daily High	1.241
Previous Daily Low	1.2349
Previous Weekly High	1.2498
Previous Weekly Low	1.2337
Previous Monthly High	1.2896
Previous Monthly Low	1.2494
Daily Fibonacci 38.2%	1.2387
Daily Fibonacci 61.8%	1.2372
Daily Pivot Point S1	1.2349
Daily Pivot Point S2	1.2318
Daily Pivot Point S3	1.2288
Daily Pivot Point R1	1.241
Daily Pivot Point R2	1.2441
Daily Pivot Point R3	1.2471

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 treads water near 1.1800 ahead of ECB rate decision

EUR/USD is keeping its range at around 1.1800 in the European trading hours on Thursday. The pair awaits the European Central Bank interest rate decision for fresh impetus after the Eurozone inflation declined well below the central bank's 2% target.

GBP/USD stays weak toward 1.3600 on BoE's 'Super Thursday'

GBP/USD holds its losses for the second successive session, directed toward 1.3600 in European trading on Thursday. The pair weakens as the Pound Sterling comes under pressure ahead of the Bank of England’s interest rate decision due later in the day.

Gold recovers major part of intraday losses to sub-$4,800 levels; down a little on firmer USD

Gold rebounds swiftly following the Asian session fall to sub-$4,800 levels and climbs back above the $4,900 mark in the last hour, though the upside potential seems limited. Wednesday's softer US ADP report pointed to labor market weakness and strengthened the case for interest rate cuts by the Federal Reserve, lending support to the non-yielding yellow metal.

BTC steadies as bears shift focus toward $70,000

Bitcoin price remains under pressure so far this week, with the Crypto King slipping below $73,000 on Tuesday for the first time since November 2024. The price dip in BTC was fueled as the news came in late Tuesday that the US military shot down an Iranian drone that “aggressively” approached the USS Abraham Lincoln aircraft carrier in the Arabian Sea.

European Central Bank seen holding interest rates, reinforcing its wait-and-see stance

The European Central Bank is holding its two-day meeting and will announce its monetary policy decision on Thursday. The ECB is widely expected to keep interest rates on hold for the fifth consecutive meeting, leaving the main refinancing operations, the marginal lending facility, and the deposit facility at 2.15%, 2.4%, and 2%, respectively.

Top Crypto Losers: Zcash, Stacks, BNB drop further as Bitcoin weakens

Zcash, Stacks, and BNB (formerly Binance Coin) are among the biggest losers over the last 24 hours as Bitcoin approaches $72,000. The correction is driven by multiple factors, including massive, steady outflows from institutions and large-wallet investors, broader-market risk-off sentiment, and the delay in the Digital Asset Clarity Act.