USD/CAD off highs, back below 1.3200 on U-Mich

The pair retreats from earlier tops above the 1.3200 handle.
CAD gives away gains after yesterday’s solid advance.
US Consumer Sentiment came in below expectations at 97.1 in July.

Pablo Piovano FXStreet

Following Thursday’s pullback, USD/CAD is now trading in the positive ground although it failed to sustain the upside further north of the 1.3200 handle for the time being.

USD/CAD off highs post-US data

Despite Thursday’s retracement, the pair manages to remain on track to close the first week with gains after two consecutive weekly pullbacks, all amidst jitters on the trade front and the recent cautious stance from the Bank of Canada.

It is worth mentioning that the BoC raised its key rate by 25 bp to 1.50% at its meeting earlier in the week. The central bank, however, delivered a cautious message and emphasized the data dependence stance.

Spot is now fading part of the initial up move beyond 1.3200 the figure after the preliminary reading of the US Consumer Sentiment for the month of July came in below forecasts, also prompting the US Dollar Index to recede from highs around 95.20 and re-focus on the 95.00 handle.

Earlier in the session US Export Prices rose at a monthly 0.3in June, while Import Prices contracted 0.4% inter-month.

USD/CAD significant levels

As of writing the pair is gaining 0.11% at 1.3168 and a break above 1.3218 (high Jul.11) would open the door to 1.3336 (high Jun.22) and finally 1.3387 (2018 high Jun.28). On the downside, the immediate support aligns at 1.3142 (10-day sma) seconded by 1.3132 (61.8% Fibo of the 2017 drop) and then 1.3064 (low Jul.10).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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