- USD/CAD stages a goodish rebound from a multi-week low amid a pickup in the USD demand.
- Bullish Crude Oil prices underpin the Loonie and act as a headwind amid a positive risk tone.
- Traders also seem reluctant to place bets ahead of the Canadian GDP and the US PCE inflation.
The USD/CAD pair shows resilience below the 100-day Simple Moving Average (SMA) and attracts some buying in the vicinity of the 1.3500 psychological mark, or a five-and-half-week low touched earlier Friday. The pair maintains its bid tone heading into the North American session and is currently placed around the 1.3550 area, just a few pips below the daily high.
The US Dollar (USD) regains some positive traction on the last day of the week and is seen as a key factor acting as a tailwind for the USD/CAD pair. That said, the prevalent risk-on mood keeps a lid on any meaningful upside for the safe-haven Greenback. Apart from this, the recent uptrend in Crude Oil prices, to a nearly three-week high, lends some support to the commodity-linked Loonie and contributes to capping gains for the major.
Traders also seem reluctant to place aggressive bets ahead of the release of the monthly Canadian GDP and the US Core PCE Price Index, the Fed's preferred inflation gauge. The USD/CAD pair, for now, seems to have stalled its intraday positive move near the 50% Fibonacci retracement level of the February-March rally. A sustained move beyond could lift spot prices beyond the 1.3600 mark, towards the 1.3640 region, or the 61.8% Fibo. level.
Some follow-through buying beyond mid-1.3600s will negate any near-term bearish bias and pave the way for a move towards the 1.3700 round figure en route to the 1.3720 zone, or the 23.6% Fibo. level.
On the flip side, the 1.3500 mark represents 61.8% Fibo. level and should now act as a pivotal point, which if broken will be seen as a fresh trigger for bearish traders. The USD/CAD pair might then turn vulnerable to accelerate the fall towards intermediate support near the 1.3455-1.3450 horizontal zone. Spot prices could eventually drop to the 1.3400 round figure en route to the next relevant support near the 1.3330-1.3325 region.
USD/CAD daily chart
Key levels to watch
|Today last price||1.3549|
|Today Daily Change||0.0026|
|Today Daily Change %||0.19|
|Today daily open||1.3523|
|Previous Daily High||1.3581|
|Previous Daily Low||1.3516|
|Previous Weekly High||1.3804|
|Previous Weekly Low||1.3631|
|Previous Monthly High||1.3666|
|Previous Monthly Low||1.3262|
|Daily Fibonacci 38.2%||1.3541|
|Daily Fibonacci 61.8%||1.3556|
|Daily Pivot Point S1||1.3499|
|Daily Pivot Point S2||1.3474|
|Daily Pivot Point S3||1.3433|
|Daily Pivot Point R1||1.3564|
|Daily Pivot Point R2||1.3605|
|Daily Pivot Point R3||1.363|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD closes in on 1.0700 amid broad USD strength
EUR/USD came under renewed bearish pressure in the American session and dropped to its lowest level since late March near 1.0700. Stronger-than-forecast PCE inflation data and hawkish comments from Fed's Mester provide a boost to the US Dollar and weigh on the pair.
GBP/USD loses bullish momentum after US data, falls below 1.2350
GBP/USD has reversed its direction and erased a large portion of its daily gains on Friday after the data from the US showed that the annual core PCE inflation edged higher to 4.7% in April. Although the pair clings to small daily gains below 1.2350, it remains on track to end the third straight week in negative territory.
Gold erases daily gains, holds above $1,940
Gold price turned south and declined to the $1,940 area in the American session on Friday. The benchmark 10-year US Treasury bond yield holds stead above 3.8% after stronger-than-expected core PCE inflation data from the US, not allowing XAU/USD to gain traction.
Ethereum price to outpace Bitcoin price as ETH jumps over key hurdle where BTC fumbles
ETH is working on its recovery after it dipped to a two-week low on Thursday. While Bitcoin price has failed to make a similar move and head back above $26,500, Ethereum is outpacing Bitcoin and has been able to push above $1,800.
Ford Stock: New agreement will give customers access to 12,000 Tesla chargers
Ford (F) stock has advanced about 2.5% early Friday following CEO Chris Farley’s announcement that Ford owners will be able to charge their EVs at Tesla Superchargers beginning in early 2024.