USD/CAD Price Analysis: Recovers around 50-60 pips from over 1-week lows

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.

Haresh Menghani FXStreet

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

USD/CAD

Overview
Today last price	1.4119
Today Daily Change	-0.0073
Today Daily Change %	-0.51
Today daily open	1.4192

Trends
Daily SMA20	1.3871
Daily SMA50	1.348
Daily SMA100	1.3323
Daily SMA200	1.3259

Levels
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

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.