• USD/CAD snaps a two-day downtrend as USD attempts a bounce.
  • Risk-off mood extends into Europe amid renewed China Evergrande fears.
  • WTI retreats from seven-year tops, undermines CAD, supporting the pair.

USD/CAD is staging a decent comeback from four-month lows of 1.2289, heading towards 1.2350, in response to a broad-based rebound in the US dollar.

The greenback is finding its feet against its major rivals, bouncing from three-week lows, as the risk appetite takes a hit amid the re-emergence of China Evergrande default fears after the indebted property development giant failed to clinch a property sale deal with Hopson Development Holdings.

Further, global energy crunch combined with rising inflationary pressures continues to sap investors’ confidence, putting a floor under the greenback’s recent corrective decline.

On the other hand, the risk-off market profile is weighing negatively on the higher-yielding WTI, as it retreats from fresh seven-week highs of $83.71, currently down 0.70% at $82.80. The pullback in oil prices is weighing on the resource-linked loonie, aiding the recovery in the currency pair.

Despite the rebound, risks remain skewed to the downside for USD/CAD, as hotter Canadian inflation data fans sooner-than-expected rate hike bets from the Bank of Canada (BOC). The country’s annual Consumer Price Index (CPI) rose by 4.4% in September vs. 4.3% expected.

Next of relevance for the major remains the US weekly Jobless Claims data and Fedspeak while the sentiment on the Wall Street will be closely followed amid the Q3 earnings season.

USD/CAD: Technical levels to watch out

USD/CAD

Overview
Today last price 1.2330
Today Daily Change 0.0011
Today Daily Change % 0.09
Today daily open 1.232
 
Trends
Daily SMA20 1.2534
Daily SMA50 1.2607
Daily SMA100 1.2509
Daily SMA200 1.2501
 
Levels
Previous Daily High 1.237
Previous Daily Low 1.2307
Previous Weekly High 1.2498
Previous Weekly Low 1.2337
Previous Monthly High 1.2896
Previous Monthly Low 1.2494
Daily Fibonacci 38.2% 1.2331
Daily Fibonacci 61.8% 1.2346
Daily Pivot Point S1 1.2295
Daily Pivot Point S2 1.227
Daily Pivot Point S3 1.2233
Daily Pivot Point R1 1.2357
Daily Pivot Point R2 1.2395
Daily Pivot Point R3 1.242

 

 

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