• USD/CAD continues to trade in positive territory above 1.3500 on Friday.
  • The data from Canada showed that Retail Sales declined sharply in July.
  • The dollar preserves its strength amid risk aversion ahead of the weekend.

The USD/CAD pair retreated toward 1.3500 during the European trading hours but managed to gather bullish momentum in the second half of the day. As of writing, the pair was up 0.6% on the day at 1.3565, on track to its highest weekly close since June 2020.

The broad-based dollar strength on Friday helped USD/CAD gain traction. Boosted by safe-haven flows, the US Dollar Index, which tracks the dollar's performance against a basket of six major currencies, climbed above 112.00 for the first time in two decades. With Wall Street's main indexes losing more than 1% after the opening bell, the greenback continues to outperform its rivals and not allowing USD/CAD to stage a downward correction.

Meanwhile, the data published by Statistics Canada revealed that Retail Sales contracted by 2.5% on a monthly basis in July, compared to the market expectation for a decline of 2%. On top of the disappointing data from Canada, crude oil prices are down more than 5% on the day, further weighing on the commodity-sensitive loonie.

Disappointing PMI data from the euro area and the UK earlier in the day revived concerns over a global economic slowdown, causing investors to price in a worsening energy demand outlook. At the time of press, the barrel of West Texas Intermediate was trading at its lowest level since January near $79.

Market participants now await S&P Global's preliminary September Manufacturing and Services PMI data for the US.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3536
Today Daily Change 0.0048
Today Daily Change % 0.36
Today daily open 1.3488
 
Trends
Daily SMA20 1.3174
Daily SMA50 1.3002
Daily SMA100 1.2933
Daily SMA200 1.2807
 
Levels
Previous Daily High 1.3545
Previous Daily Low 1.3409
Previous Weekly High 1.3308
Previous Weekly Low 1.2954
Previous Monthly High 1.3141
Previous Monthly Low 1.2728
Daily Fibonacci 38.2% 1.3493
Daily Fibonacci 61.8% 1.3461
Daily Pivot Point S1 1.3416
Daily Pivot Point S2 1.3345
Daily Pivot Point S3 1.328
Daily Pivot Point R1 1.3552
Daily Pivot Point R2 1.3616
Daily Pivot Point R3 1.3688

 

 

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