USD/CAD pauses on the way to 1.2600, oil moves, US data in focus

USD/CAD remains sidelined after jumping to five-week tops.
Bank holidays in US, Canada couldn’t restrict the bulls amid Fed rate hike chatters, softer oil prices.
US Michigan Consumer Sentiment, risk catalysts eyed for fresh impulse.

Anil Panchal FXStreet

USD/CAD seesaws around early October levels near 1.2580-90 during Friday’s Asian session. The Loonie pair refreshed the multi-day peak the previous day despite bank holidays in Canada and the US restricted market moves.

The reason could be linked to the US dollar’s sustained run-up on the back of the Fed rate hike chatters and sluggish prices of Canada’s main export item, WTI crude oil. However, traders turn cautious ahead of the Treasury market’s opening after a one-day off and will be waiting for US data, as well as old catalysts for fresh impulse.

US Dollar Index (DXY) refreshed the 16-month high to 95.1961 before closing around 95.1228 by the end of Thursday’s North American session.

Over a three-decade high in US inflation propelled Fed rate hike concerns and favored the US dollar of late.

On the same line could be the greenback’s safe-haven allure that gains importance amid growing concerns over China’s economic growth, mainly due to the credit crisis for real-estate companies and power cuts across the country. The same joins the Sino-American tussles over the phase 1 deal, Vietnam and Hong Kong to weigh on oil prices and offer additional fuel to the USD/CAD prices.

It is worth noting that talks of the US releasing Strategic Petroleum Reserve’s (SPR) to battle the energy crisis also recently challenged WTI bulls and favored the USD/CAD upside.

Amid these plays, Wall Street closed mixed with the holiday in the US Treasury markets. However, the US Michigan Consumer Sentiment for November will be eyed for fresh impulse as the traders return from the holiday.

Technical analysis

A clear break of the 100- and 50-DMA convergence, near 1.2540-45, enables USD/CAD bulls to aim for multiple levels marked since late July around the 1.2600 threshold.

Additional important levels

Overview
Today last price	1.2583
Today Daily Change	0.0088
Today Daily Change %	0.70%
Today daily open	1.2495

Trends
Daily SMA20	1.2393
Daily SMA50	1.2538
Daily SMA100	1.2538
Daily SMA200	1.2476

Levels
Previous Daily High	1.25
Previous Daily Low	1.2387
Previous Weekly High	1.248
Previous Weekly Low	1.2352
Previous Monthly High	1.2739
Previous Monthly Low	1.2288
Daily Fibonacci 38.2%	1.2457
Daily Fibonacci 61.8%	1.243
Daily Pivot Point S1	1.2422
Daily Pivot Point S2	1.2348
Daily Pivot Point S3	1.231
Daily Pivot Point R1	1.2534
Daily Pivot Point R2	1.2573
Daily Pivot Point R3	1.2646

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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