- USD/CAD added to the overnight losses and dropped to over one-week lows on Thursday.
- Weaker oil prices undermined the loonie and helped limit deeper losses, at least for now.
The USD/CAD pair dropped to over one-week lows, closer to mid-1.4000s during the early North-American session, albeit quickly recovered few pips thereafter.
The overnight break below 200-hour SMA and a subsequent slide below the 38.2% Fibonacci level of the 1.3518-1.4668 upsurge acted as a key trigger for bearish traders.
However, the intraday downtick showed some resilience below 50.0% Fibo. level amid slightly oversold conditions on the 1-hourly chart and weaker crude oil prices.
Meanwhile, technical indicators on the daily chart – though have been correcting – have still managed to hold in the bullish territory and warrant some caution for bears.
Hence, it will be prudent to wait for some strong follow-through selling, possibly below daily swing lows, around the 1.4070-65 region, before positioning for a further slide.
Sustained break through the mentioned support will set the stage for an extension of the pair’s recent sharp retracement slide from multi-year tops set last Thursday.
On the flip side, any meaningful recovery attempt might confront some fresh supply the 1.4190-1.4200 region and seems more likely to remain capped ahead of 38.2% Fibo.
USD/CAD 1-hourly chart
Technical levels to watch
|Today last price||1.4119|
|Today Daily Change||-0.0073|
|Today Daily Change %||-0.51|
|Today daily open||1.4192|
|Previous Daily High||1.4484|
|Previous Daily Low||1.4178|
|Previous Weekly High||1.4668|
|Previous Weekly Low||1.3788|
|Previous Monthly High||1.3465|
|Previous Monthly Low||1.3202|
|Daily Fibonacci 38.2%||1.4295|
|Daily Fibonacci 61.8%||1.4367|
|Daily Pivot Point S1||1.4086|
|Daily Pivot Point S2||1.398|
|Daily Pivot Point S3||1.3781|
|Daily Pivot Point R1||1.4391|
|Daily Pivot Point R2||1.459|
|Daily Pivot Point R3||1.4696|
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