USD/CAD oscillates around 1.3600, upside remains favored as oil tumbles below $80.00


  • USD/CAD is gearing up for a fresh rally and will continue its four-day winning streak.
  • Higher core CPI has trimmed consensus for US Durable Goods Orders data.
  • Oil prices have slipped below $80.00 on weaker growth projections.

The USD/CAD pair has turned sideways after printing a fresh two-decade high at 1.3623 in the Asian session. The asset is preparing for a fresh rally as it is expected to continue its four-days winning spree. A minor corrective move cannot be ruled out as the asset is continuously scaling higher and the US dollar index (DXY) also displays some signs of exhaustion after printing a fresh two-decade high of 114.52.

The DXY is losing momentum as momentum oscillators have turned extremely overbought on lower time frames. The asset remained extremely stronger on souring market sentiment. The rumoured house arrest of Chinese leader Xi Jinping and warning of a nuclear attack by Russian leader Vladimir Putin has dented the sentiment of market participants.

A volatile performance is also expected from the DXY as investors are awaiting the release of the US Durable Goods Orders data, which will release on Tuesday. The orders for Durable Goods are expected to drop by 1.1%, against the prior release of 0.1%. The decline in the economic data is mainly because of higher prices for durable goods. Also, the core Consumer Price Index (CPI) accelerated to 6.3% vs. the former figure of 5.9%.

It is worth noting that the USD/CAD pair is seen much stronger than the DXY, which indicates that the Canadian dollar is also weakend along with a firmer DXY. The loonie has turned fragile on weaker oil prices. The black gold has surrendered the psychological support of $80.00 as ultra-hawkish guidance by the Federal Reserve (Fed) on interest rates has trimmed the growth prospects and eventually demand for oil. Also, gasoline demand is falling sharply in the US economy.

USD/CAD

Overview
Today last price 1.36
Today Daily Change 0.0006
Today Daily Change % 0.04
Today daily open 1.3594
 
Trends
Daily SMA20 1.3202
Daily SMA50 1.3014
Daily SMA100 1.2939
Daily SMA200 1.2811
 
Levels
Previous Daily High 1.3613
Previous Daily Low 1.3468
Previous Weekly High 1.3613
Previous Weekly Low 1.3227
Previous Monthly High 1.3141
Previous Monthly Low 1.2728
Daily Fibonacci 38.2% 1.3557
Daily Fibonacci 61.8% 1.3523
Daily Pivot Point S1 1.3504
Daily Pivot Point S2 1.3414
Daily Pivot Point S3 1.3359
Daily Pivot Point R1 1.3648
Daily Pivot Point R2 1.3703
Daily Pivot Point R3 1.3793

 

 

 

 

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