USD/CAD holds comfortably above 1.3300 handle

The USD remains well supported by a goodish pickup in the US bond yields.
Reports that the EU will halt imports of Canadian fruits further weighed on CAD.
Subdued Oil price action does little to influence ahead of Powell’s speech.

Haresh Menghani FXStreet

The USD/CAD pair held comfortably above the 1.3300 handle through the early European session on Friday, albeit remained well below two-month tops set earlier this week.

A combination of factors helped the pair to continue gaining some positive traction for the second consecutive session on Friday and built on this week's rebound from the 1.3250 support area - tested in reaction to hotter-than-expected Canadian CPI report on Wednesday.

A combination of factors remain supportive

Against the backdrop of not so dovish FOMC meeting minutes on Wednesday, the US Dollar remained well supported by a goodish pickup in the US Treasury bond yields and turned out to be one of the key factors behind the pair's ongoing positive momentum.

This coupled with a report that the European Union will halt imports of Canadian cherries and other fresh fruits starting Sept. 1 amid new import requirements related to pests further weighed on the Canadian Dollar and remained supportive of the pair's bid tone.

Meanwhile, a subdued action around Crude Oil prices did little to influence demand for the commodity-linked currency - Loonie, or provide any meaningful impetus ahead of the Fed Chair Jerome Powell's scheduled speech at Jackson Hole Symposium later this Friday.

Given that another rate cut in the September meeting is fully priced in, Powell's comments will be closely scrutinized to find out if the central bank is prepared to slash rates further and will play a key role in determining the pair's next leg of a directional move.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3316
Today Daily Change	0.0011
Today Daily Change %	0.08
Today daily open	1.3305

Trends
Daily SMA20	1.3247
Daily SMA50	1.3184
Daily SMA100	1.3298
Daily SMA200	1.3314

Levels
Previous Daily High	1.3316
Previous Daily Low	1.3275
Previous Weekly High	1.334
Previous Weekly Low	1.3184
Previous Monthly High	1.3215
Previous Monthly Low	1.3016
Daily Fibonacci 38.2%	1.3301
Daily Fibonacci 61.8%	1.3291
Daily Pivot Point S1	1.3281
Daily Pivot Point S2	1.3257
Daily Pivot Point S3	1.324
Daily Pivot Point R1	1.3322
Daily Pivot Point R2	1.334
Daily Pivot Point R3	1.3364

Author

Haresh Menghani

FXStreet

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

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