- 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.
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
|Today last price||1.3293|
|Today Daily Change||0.0061|
|Today Daily Change %||0.51|
|Today daily open||1.3227|
|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|
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.