USD/CAD holds steady above 1.3200 handle, lacks follow-through


  • The USD stages a modest bounce from over one-month lows.
  • Sliding Oil prices undermined the Loonie and remain supportive.
  • Thursday’s second-tier US/Canadian data eyed for a fresh impetus.

The Greenback edged higher against its Canadian counterpart and helped the USD/CAD pair to move away from weekly lows set in the previous session.
 
The pair continued showing some resilience below the 1.3200 round-figure mark and a combination of supporting factors helped it to gain some positive traction during the Asian session on Thursday. As investors looked past Wednesday's disappointing release of the US monthly retail sales figures, a modest US Dollar rebound from over one-month lows extended some support to the major.

Modest USD uptick/weaker oil prices supportive

On the other hand, the commodity-linked currency – Loonie was weighed down by a fall in Crude Oil prices, led by a sharp rise in the US stockpiles. The American Petroleum Institute (API) reported on Wednesday that inventories rose by 10.5 million barrels to 432.5 million barrels for the week ended Oct. 11, which added to renewed concerns about a further escalation of the US-China trade war.
 
Given that market participants might have already started pricing in prospects for yet another interest rate cut by the Fed in October, any subsequent move up might continue to face some fresh supply ahead of the very important 200-day SMA. Hence, it will be interesting to see if the pair is able to capitalize on the uptick or remains confined well within a broader trading range held since the beginning of this week.
 
In the meantime, Thursday economic docket – featuring the release of Canadian manufacturing sales, along with Philly Fed manufacturing index and housing market data from the US – will be looked upon for some short-term trading impetus later during the early North-American session.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3208
Today Daily Change 0.0010
Today Daily Change % 0.08
Today daily open 1.3198
 
Trends
Daily SMA20 1.3266
Daily SMA50 1.3264
Daily SMA100 1.3234
Daily SMA200 1.3287
 
Levels
Previous Daily High 1.3238
Previous Daily Low 1.3184
Previous Weekly High 1.3348
Previous Weekly Low 1.317
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3204
Daily Fibonacci 61.8% 1.3217
Daily Pivot Point S1 1.3176
Daily Pivot Point S2 1.3153
Daily Pivot Point S3 1.3122
Daily Pivot Point R1 1.323
Daily Pivot Point R2 1.3261
Daily Pivot Point R3 1.3283

 

 

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