• The overnight dovish shift by the BoC provided a strong lift on Wednesday.
  • The post-FOMC USD selloff prompted some fresh selling at higher levels.
  • Subdued oil prices undermined the Loonie and helped limit the downside.

The USD/CAD pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session on Thursday.
A combination of diverging forces failed to provide any meaningful impetus and led to a subdued/range-bound price action on Thursday, forcing the pair to digest the overnight volatile swing.

Weaker oil prices partly offset USD fall

The pair added to the previous session's modest recovery move from over three-month lows and gained strong follow-through traction on Wednesday in reaction to a dovish shift by the Bank of Canada.
The intraday upsurge of over 125 pips got an additional boost after the Fed sent a clear signal of a possible extended pause to the recent policy easing cycle, through the momentum faltered near 100-day SMA.
The pair retreated around 50 pips from levels just above the 1.3200 handle after the Fed Chair Jerome Powell said that we will need to see a significant move up in inflation before considering raising interest rates.
The not so hawkish remarks triggered a fresh leg of a freefall in the US Treasury bond yields, which kept the USD bulls on the defensive and did little to assist the pair to build on the positive momentum.
However, a weaker tone surrounding Crude Oil prices undermined demand for the commodity-linked currency – Loonie and turned out to be one of the key factors lending some support to the major.
It will now be interesting to see if bulls are able to regain control or the overnight rejection from a key hurdle marks the resumption of the prior/well-established bearish trend ahead of Friday's US monthly jobs report.

Technical levels to watch


Today last price 1.3162
Today Daily Change 0.0003
Today Daily Change % 0.02
Today daily open 1.3159
Daily SMA20 1.3183
Daily SMA50 1.3228
Daily SMA100 1.3206
Daily SMA200 1.3277
Previous Daily High 1.3209
Previous Daily Low 1.3074
Previous Weekly High 1.3139
Previous Weekly Low 1.3052
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3157
Daily Fibonacci 61.8% 1.3125
Daily Pivot Point S1 1.3085
Daily Pivot Point S2 1.3012
Daily Pivot Point S3 1.295
Daily Pivot Point R1 1.3221
Daily Pivot Point R2 1.3282
Daily Pivot Point R3 1.3356



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

Dollar in trouble, EUR/USD recovers the 1.1000 level

The American currency came under selling pressure, although the EUR/USD pair is a laggard, barely above the 1.1000 figure. Trump´s impeachment process seems to be behind the latest slide.


GBP/USD approaches 1.2900 as the greenback eases

The GBP/USD pair is at fresh weekly highs in the 1.2880 region, as speculative interest moved away from the dollar, and in spite of poor UK data.


USD/JPY slumps to fresh 10-day lows near 108.30 on falling US T-bond yields

The USD/JPY pair came under renewed bearish pressure during the American tracing hours and slumped to its lowest level in ten days at 108.25 as the dismal market mood allowed the JPY to continue to gather strength against its rivals as a safe haven.


Gold: the $1,470 regions caps the upside

Prices of the precious metal keep the positive performance in the second half of the week, although the $1,470 region continues to cap the upside for the time being.

Gold News

Crypto bulls and bears meet at the crossroads

Cryptocurrencies are experiencing sharp falls among the main actors of the top-three cryptos by market capitalization. If in the past few days XRP was the top representative of fear, now red is also the color of Bitcoin and even Ethereum.

Read more