USD/CAD: Indecisive around three-year low below 1.2300 despite downbeat WTI

USD/CAD bears keep reins despite latest corrective pullback.
WTI remains on the back foot amid sluggish markets.
US dollar weakness, Canada’s faster jabbing battle covid woes, pre-NFP cautious sentiment.

Anil Panchal FXStreet

USD/CAD fades recovery moves from the lowest since 2018 while taking rounds to 1.2270 amid Thursday’s Asian session. In doing so, the Loonie pair struggles to justify the recent weakness of WTI, Canada’s key export, as well as the coronavirus (COVID-19), worries ahead of the US and Canadian employment data, up for publishing on Friday.

The quote refreshed multi-day low the previous day as the US dollar’s pullback, amid broad risk-on mood, joined downbeat US data and Canada’s push for faster vaccinations. However, the mixed mood before Friday’s US NFP and Canada’s jobs report trouble USD/CAD bears afterward.

The Canadian government announced further covid restrictions in Alberta province the previous day. Also on the negative side could be the recently weaker data from Ottawa and the Bank of Canada’s (BOC) bullish bias.

Amid these plays, Wall Street closed mixed but the US Treasury yields and the US dollar index (DXY) held lower ground on Wednesday. Further, S&P 500 Futures struggle for clear direction by the press time. Additionally, WTI drops 0.24% to retest $65.10 figures, down for the second consecutive day, as traders prepare for the week’s key events.

Moving on, an absence of major data/events can keep troubling USD/CAD but the broad bearish trend remains intact.

Read: Canadian Jobs Preview: US demand likely to outweigh covid concerns, push hiring, CAD higher

Technical analysis

While 1.2320-25 guards the quote’s short-term recovery, March’s low near 1.2365 adds to the upside filters. Meanwhile, the year 2018 low near 1.2050-45 becomes the key support to watch during further USD/CAD declines.

Additional important levels

Overview
Today last price	1.227
Today Daily Change	-0.0041
Today Daily Change %	-0.33
Today daily open	1.2311

Trends
Daily SMA20	1.2463
Daily SMA50	1.253
Daily SMA100	1.2634
Daily SMA200	1.2892

Levels
Previous Daily High	1.2352
Previous Daily Low	1.2276
Previous Weekly High	1.2491
Previous Weekly Low	1.2266
Previous Monthly High	1.2654
Previous Monthly Low	1.2266
Daily Fibonacci 38.2%	1.2323
Daily Fibonacci 61.8%	1.2305
Daily Pivot Point S1	1.2274
Daily Pivot Point S2	1.2237
Daily Pivot Point S3	1.2198
Daily Pivot Point R1	1.235
Daily Pivot Point R2	1.2388
Daily Pivot Point R3	1.2425

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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