USD/CAD Price Analysis: Reaches a nearly two-year high above 1.3300 as buyers eye 1.3400

The Loonie would finish the week with losses above 2%.
A dismal sentiment weighed on risk-sensitive currencies like the Canadian dollar.
USD/CAD Price Analysis: A daily close above 1.3300 could pave the way towards 1.3400.

Christian Borjon Valencia FXStreet

The USD/CAD rallied to a nearly two-year high at around 1.3307, a level last seen in November 2020, spurred by a risk-off impulse as investors worried about an aggressive Federal Reserve hike that could tap the US economy into a recession. At the time of writing, the USD/CAD is trading at 1.3293, above its opening price by 0.51%.

USD/CAD Price Analysis: Technical outlook

The Loonie weakened vs. a solid greenback, piercing the 1.3300 mark briefly during the North American session. Given that the USD/CAD began trending up in April of 2021, the major might continue to extend its gains. Once achieving a daily close above the 1.3300 figure, the following target would be October 29, 2020, a daily high, at around 1.3390. Once cleared, it would expose the September 2020 highs at 1.3418.

Near term, the USD/CAD is poised to the upside, even though it retreated from above the 1.3300 figure. Worth noting that the 20-EMA at 1.3267 capped the retracement; since then, the pair recovered towards the R2 daily pivot at 1.3295. A breach of the latter will re-expose the YTD high at 1.3307, which, once cleared, would open the door toward the R3 pivot point at 1.3347, ahead of the R4 daily pivot at the 1.3400 mark.

USD/CAD Key Technical Levels

USD/CAD

Overview
Today last price	1.3293
Today Daily Change	0.0061
Today Daily Change %	0.51
Today daily open	1.3227

Trends
Daily SMA20	1.3077
Daily SMA50	1.2967
Daily SMA100	1.2906
Daily SMA200	1.2793

Levels
Previous Daily High	1.324
Previous Daily Low	1.3154
Previous Weekly High	1.3209
Previous Weekly Low	1.2982
Previous Monthly High	1.3141
Previous Monthly Low	1.2728
Daily Fibonacci 38.2%	1.3207
Daily Fibonacci 61.8%	1.3187
Daily Pivot Point S1	1.3174
Daily Pivot Point S2	1.3121
Daily Pivot Point S3	1.3087
Daily Pivot Point R1	1.326
Daily Pivot Point R2	1.3294
Daily Pivot Point R3	1.3347

Author

Christian Borjon Valencia

FXStreet

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.