The USD/CAD major witnessed a mild recovery from 3-week lows, touched during Asian session on Friday, and has now tipped back above 1.3300 handle, albeit remained in red for the second consecutive session.
Earlier during Asian session, the pair extended previous session's sharp slide below 50-day SMA and dropped to its lowest level since Nov. 9 as OPEC deal-led strong rally in crude oil prices was seen boosting demand for the dollar-denominated commodity - Loonie. The pair, however, pulled-back from lows on the back of a mild retracement in crude oil prices, with WTI crude oil trading weak with a cut of around 1% on the back of profit-taking.
The pair's recovery, however, lacked momentum as investors held back on making big bets going into today's important releases. Friday's economic docket features the release of employment reports, from both the US and Canada, later during NA session, and is likely to help investors determine the next leg of directional move for the major. In the meantime, sentiment surrounding crude oil prices might continue to provide impetus for short-term traders.
Technical levels to watch
Recovery momentum above 1.3300 handle might now confront resistance at 50-day SMA near 1.3325 above which the pair is likely to witness a short-covering bounce immediately towards 1.3360 resistance before making an attempt to reclaim 1.3400 handle. On the downside, weakness below 1.3264 (Nov. 9 low) is likely to accelerate the slide towards 1.3200 handle en-route 100-day SMA support near 1.3185 region.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD hovers around 1.0700, eyes on US first-quarter GDP data
EUR/USD hovers around the 1.0700 psychological level on Thursday during the early Thursday. The modest uptick of the major pair is supported by the softer US Dollar. Later in the day, Germany’s GfK Consumer Confidence Survey for April will be released.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.