USD/CAD flirting with monthly lows, just above 1.2900 handle

Haresh Menghani FXStreet

• The USD selling pressure remains unabated on Thursday.
• Bullish oil prices underpin Loonie and add to the weakness.
• NAFTA uncertainties might help limit immediate sharp downfall.

The USD/CAD pair remained under some selling pressure for the third consecutive session on Thursday, with bulls trying to defend the 1.2900 handle.

The pair extended this week's rejection slide from 100-day SMA support turned resistance and was being weighed down by the prevailing bearish sentiment surrounding the US Dollar. Even overnight reports, claiming that the US and Canada wouldn't be able to reach a NAFTA deal this week, failed to assist the pair to register any meaningful recovery from monthly lows.

Meanwhile, the ongoing bullish run in crude oil prices underpinned the commodity-linked currency - Loonie and kept exerting downward pressure through the mid-European session on Thursday. WTI crude oil prices held above the $71.00 mark and were supported by Wednesday's bullish EIA report, which showed that the US oil inventories decrease by 2.1 million barrels and gasoline output decreased to an average of 10.3 million barrels per day.

Traders now look forward to the US economic docket, featuring the second-tier releases of Philly Fed Manufacturing Index, usual initial weekly jobless claims and existing home sales data. This coupled with Canadian ADP report might produce some meaningful trading opportunities later during the early North-American session.

Technical levels to watch

A follow-through weakness below the 1.2900 handle is likely to get extended towards the very important 200-day SMA support, currently near the 1.2865 region. On the flip side, any attempted recovery back above 1.2935-40 region might now be capped and confront some fresh supply near the key 1.30 psychological mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.