- USD/CAD struggles for a firm direction on Friday and remains confined in a narrow range.
- Traders now await the release of the monthly employment data from the US and Canada.
- Bearish traders might wait for sustained weakness below the 1.3385 confluence support.
The USD/CAD pair extends its sideways consolidative price moves through the mid-European session and remains confined in a narrow trading band below mid-1.3400s.
The US Dollar selling remains unabated on the last day of the week amid growing acceptance that the US Federal Reserve will slow the pace of its rate-hiking cycle. This, in turn, continues to cap the USD/CAD pair, though a modest downtick in Oil prices undermines the commodity-linked Loonie and acts as a tailwind. Traders also seem reluctant to place aggressive bets ahead of the monthly employment reports from the US and Canada.
From a technical perspective, the USD/CAD pair, so far, has managed to hold above the 1.3400 mark and the 100-period Simple Moving Average (SMA) on the 4-hour chart. The latter, currently pegged around the 1.3385 area, coincides with over a two-week-old ascending trend-line extending from the November swing low and should now act as a pivotal point. A convincing break below will be seen as a key trigger for bears and set the stage for further losses.
The subsequent downfall will expose the crucial 100-day SMA support, currently around the 1.3300-1.3290 region. Some follow-through selling should pave the way for an extension of the recent sharp pullback from a 29-month peak touched in October.
On the flip side, the overnight swing high, around the 1.3470 zone, might act as an immediate barrier ahead of the 1.3500 psychological mark. A sustained strength beyond the latter could lift the USD/CAD pair towards the 1.3575-1.3580 hurdle en route to the 1.3600 mark and the multi-week high, around the 1.3645 zone set on Tuesday.
USD/CAD 4-hour chart
Key levels to watch
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.
Recommended content
Editors’ Picks
EUR/USD rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD holds above 1.2350 after UK PMIs
GBP/USD clings to modest daily gains above 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.