USD/CAD once again finds some support ahead of 200-DMA post-BoC decision

USD/CAD struggled to capitalize on its intraday recovery move from multi-month lows.
The USD selling remained unabated despite better US macro data and capped the upside.
The BoC left its key interest rates unchanged and scaled back some market operations.
A sustained break below 200-day SMA needed before positioning for any further slide.

Haresh Menghani FXStreet

The USD/CAD pair dropped around 75 pips and tumbled back closer to multi-month lows in a knee-jerk reaction to the BoC announcement.

A sharp intraday fall of around 5% in crude oil prices undermined the commodity-linked currency – the loonie – and assisted the pair to stage a goodish intraday bounce from the lowest level since early March. The uptick, however, lacked any follow-through, instead was sold into near the 1.3570 region amid a broad-based US dollar weakness.

The USD failed to gain any respite from Wednesday's release of the ADP report, which showed that private-sector employment in the US declined less-than-expected, by 2.76 million in May. Adding to this, the US ISM Non-Manufacturing PMI came in at 45.4 for May as compared to 44.0 anticipated, albeit once again failed to impress the USD bulls.

Meanwhile, the latest leg of a sudden fall during the early North American session came after the Bank of Canada (BoC) left its benchmark interest rates at 0.25% at the end of June policy meeting. However, the fact that the BoC scaled back some market operations amid improving financial conditions provided a goodish lift to the Canadian dollar.

Despite the sharp fall, the pair once again showed some resilience below the key 1.3500 psychological mark and quickly recovery around 30 pips. This makes it prudent to wait for a sustained break below the 1.3460 support (200-DMA) before traders start positioning for an extension of the pair's recent downward trajectory.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3529
Today Daily Change	0.0010
Today Daily Change %	0.07
Today daily open	1.3519

Trends
Daily SMA20	1.3914
Daily SMA50	1.4001
Daily SMA100	1.3729
Daily SMA200	1.3461

Levels
Previous Daily High	1.3586
Previous Daily Low	1.3484
Previous Weekly High	1.4008
Previous Weekly Low	1.3715
Previous Monthly High	1.4173
Previous Monthly Low	1.3715
Daily Fibonacci 38.2%	1.3523
Daily Fibonacci 61.8%	1.3547
Daily Pivot Point S1	1.3473
Daily Pivot Point S2	1.3428
Daily Pivot Point S3	1.3372
Daily Pivot Point R1	1.3575
Daily Pivot Point R2	1.3631
Daily Pivot Point R3	1.3676

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.