USD/CAD hits new weekly highs above 1.2750 on broad US dollar strength

USD/CAD prints a new weekly high at 1.2763.
The market sentiment remains downbeat, with the S&P 500 trading below the 50-DMA.
WTI is falling in the session by 1.27%, dragging the loonie with it.
Federal Election in Canada to take place on September 20.

Christian Borjon Valencia FXStreet

USD/CAD is gaining ground in the session, up 0.45%, trading at 1.2739 at the time of writing. The market sentiment remains downbeat, as US stock indexes post losses caused by expiring options on Friday. The S&P 500 has broken below the 50-day moving average, risking the “buying the dip” narrative.

Additionally, oil prices that strongly correlate with the Canadian dollar are falling for the second straight day, with the WTI trading at $72.12, down 0.55%.

US Consumer Sentiment worse than expected

In the US economic docket, the University of Michigan Consumer Sentiment edged up to 71.0, still worse than the 72.2 expected by economists. The USD/CAD reaction to that headline was muted, while investors’ focus turned to next week’s Federal Open Market Committee meeting on September 21-22.

Meanwhile, in Canada, the Federal Election to take place on September 20 could spur some choppiness in the USD/CAD while the market awaits its results.

USD/CAD Price Forecast: Technical outlook

In the daily chart, the USD/CAD is trading at 1.2728. Even though the pair reached a weekly high, it unsuccessfully tested the September 8 high at 1.2762, retracing almost 40 pips afterwards. The first resistance on the upside would be the mentioned high at 1.2762. In case of a sustained break of that level, the following supply area, would be 1.2800.

On the flip side, failure at 1.2762 could pave the way for further losses. The first support would be 1.2700. In case of a break of that level, the USD/CAD could tumble to 1.2600.

The Relative Strength Index is at 58.34, aiming higher, supporting the uptrend, but macroeconomic developments should keep bulls cautious.

Technical levels to watch

USD/CAD

Overview
Today last price	1.2739
Today Daily Change	0.0058
Today Daily Change %	0.46
Today daily open	1.2681

Trends
Daily SMA20	1.2639
Daily SMA50	1.2592
Daily SMA100	1.24
Daily SMA200	1.2524

Levels
Previous Daily High	1.27
Previous Daily Low	1.2617
Previous Weekly High	1.2762
Previous Weekly Low	1.2518
Previous Monthly High	1.2949
Previous Monthly Low	1.2453
Daily Fibonacci 38.2%	1.2668
Daily Fibonacci 61.8%	1.2648
Daily Pivot Point S1	1.2632
Daily Pivot Point S2	1.2583
Daily Pivot Point S3	1.2549
Daily Pivot Point R1	1.2715
Daily Pivot Point R2	1.2749
Daily Pivot Point R3	1.2798

Author

Christian Borjon Valencia

FXStreet

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

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