• USD/CAD eases from a one-month high following the release of upbeat Canadian Retail Sales.
  • Weaker crude oil prices could undermine the loonie and offer support amid a stronger greenback.
  • The technical set-up favours bullish traders and supports prospects for further near-term gains.

The USD/CAD pair climbs to a one-month high during the early North American session, albeit struggles to capitalize on the move beyond the 1.3000 psychological mark. The pair trims a part of its intraday gains and is currently placed around the 1.2980-1.2975 region, still up over 0.20% for the day.

The upbeat Canadian Retail Sales figures for June offers some support to the domestic currency and act as a headwind for spot prices. That said, a weaker tone around crude oil prices should keep a lid on any meaningful upside for the commodity-linked loonie. Apart from this, the ongoing US dollar rally to its highest level since mid-July favours bullish traders and supports prospects for a further appreciating move for the USD/CAD pair.

From a technical perspective, the overnight move beyond the 1.2980-1.2985 hurdle, which coincides with the 50% Fibonacci retracement level of the July-August downfall, adds credence to the positive outlook. Furthermore, oscillators on the daily chart have just started moving into bullish territory. This, in turn, suggests that the path of least resistance for the USD/CAD pair is to the upside and dips are likely to get bought into.

Traders, however, might now wait for sustained strength beyond the 1.3000 mark before placing fresh bullish bets. The USD/CAD pair could then climb to the 61.8% Fibo. level, around the 1.3035 zone and extend the momentum further towards the next relevant hurdle near the 1.3080 area. Some follow-through buying, leading to a subsequent move above the 1.3100 mark, would mark a fresh breakout and pave the way for additional gains.

On the flip side, the 1.2930-1.2920 resistance breakpoint (38.2% Fibo. level) now seems to protect the immediate downside ahead of the 1.2900 round-figure mark. Any further decline is more likely to find decent support and remain limited near the 23.6% Fibo. level, around the 1.2845-1.2840 region. Failure to defend the said support level would negate any near-term positive bias and turn the USD/CAD pair vulnerable to slide further.

The downward trajectory could then drag spot prices to the 1.2800 round-figure mark en route to the very important 200 DMA support, currently near the 1.2755 region. This is followed by the monthly low, around the 1.2730-1.2725 region, which should act as a pivotal point. A convincing break below would be seen as a fresh trigger for bears.

USD/CAD daily chart

fxsoriginal

Key levels to watch

USD/CAD

Overview
Today last price 1.298
Today Daily Change 0.0029
Today Daily Change % 0.22
Today daily open 1.2951
 
Trends
Daily SMA20 1.2857
Daily SMA50 1.2908
Daily SMA100 1.2815
Daily SMA200 1.2754
 
Levels
Previous Daily High 1.2967
Previous Daily Low 1.288
Previous Weekly High 1.295
Previous Weekly Low 1.2728
Previous Monthly High 1.3224
Previous Monthly Low 1.2789
Daily Fibonacci 38.2% 1.2934
Daily Fibonacci 61.8% 1.2914
Daily Pivot Point S1 1.2899
Daily Pivot Point S2 1.2846
Daily Pivot Point S3 1.2812
Daily Pivot Point R1 1.2985
Daily Pivot Point R2 1.3019
Daily Pivot Point R3 1.3072

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD recovers above 1.0400, looks to post weekly gains

EUR/USD recovers above 1.0400, looks to post weekly gains

EUR/USD regained its traction after dropping toward 1.0350 in the early American session and climbed above 1.0400. Trading conditions remain thin on Black Friday and the pair remains on track to end the week in positive territory.

EUR/USD News

GBP/USD recovers toward 1.2100 as US Dollar loses strength

GBP/USD recovers toward 1.2100 as US Dollar loses strength

GBP/USD managed to stage a recovery toward 1.2100 in the American session on Friday and now looks to register gains for the third straight week. The US Dollar struggles to preserve its strength as markets remain subdued on Black Friday. 

GBPUSD News

Gold steadies near $1,750 as US yields retreat

Gold steadies near $1,750 as US yields retreat

Gold price continues to move sideways at around $1,750 heading into the weekend. The benchmark 10-year US Treasury bond yield retreated from the daily high it touched above 3.75% earlier in the day, allowing XAU/USD to erase a portion of its daily losses.

Gold News

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read more

FX next week and yield curve inversions

FX next week and yield curve inversions

Since the Fed's last raise November 3, Fed Funds rate opens and closes at 3.83. The Fed Funds rate once traded freely on its own with highs and lows as any financial instrument. In 2000, Central banks implemented meetings every 6 weeks.

Read more

Forex MAJORS

Cryptocurrencies

Signatures