USD/CAD Price Analysis: US dollar testing support at 1.3460 area

US dollar has depreciated 2% this week to hit three-month lows at 1.3468
The pair is trying to find support at the 200-day SMA, at 1.3460 area.

Guillermo Alcala FXStreet

The US dollar has depreciated against its Canadian counterpart for the fourth consecutive day on Thursday, reaching fresh three-month lows at 1.3468. After having lost about 2% so far this week, the pair is now testing support at the 200-day SMA, around 1.3460, with RSI at oversold levels on the daily charts.

Upside attempts to regain lost ground have remained limited below 1.3540 with the greenback weighed by EUR/USD strength after the European Central Bank’s decision to increase its coronavirus recovery package beyond expectations.

On the other end, CAD demand has also been capped with oil prices stalled and Canadian trade balance figures showing downbear readings. The trade deficit widened to $3.3 billion in April as exports plunged by nearly 30% to their lowest level in 10 years.

On the downside, the mentioned 200-SMA at 1.3463 is guarding the path towards the 1.3420 level, which would close the March 3 to March 6 gap before March 3 low at 1.3320. On the upside, immediate resistance lies at 1.3540 intraday high, and above here, 1.3575 (Jun 3 high) and late 2018 highs at 1.3660.

USD/CAD daily chart

USD/CAD key levels to watch

USD/CAD

Overview
Today last price	1.3493
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.3496

Trends
Daily SMA20	1.3882
Daily SMA50	1.3987
Daily SMA100	1.3734
Daily SMA200	1.3462

Levels
Previous Daily High	1.3572
Previous Daily Low	1.348
Previous Weekly High	1.4008
Previous Weekly Low	1.3715
Previous Monthly High	1.4173
Previous Monthly Low	1.3715
Daily Fibonacci 38.2%	1.3516
Daily Fibonacci 61.8%	1.3537
Daily Pivot Point S1	1.346
Daily Pivot Point S2	1.3424
Daily Pivot Point S3	1.3368
Daily Pivot Point R1	1.3552
Daily Pivot Point R2	1.3608
Daily Pivot Point R3	1.3644

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

EUR/USD holds steady above 1.1850 as markets eye Eurozone GDP, US CPI inflation releases

The EUR/USD pair trades on a flat note near 1.1870 during the early Asian session on Friday. The major pair steadies amid mixed signals from the latest release of US economic indicators. Traders await the preliminary reading of the Eurozone Gross Domestic Product for the fourth quarter and US inflation data, which are published later on Friday.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold: Will US CPI data trigger a range breakout?

Gold retakes $5,000 early Friday amid a turnaround from weekly lows as US CPI data loom. The US Dollar consolidates weekly losses as AI concerns-driven risk-off mood stalls downside. Technically, Gold appears primed for a big range breakout, with risks skewed toward a bullish break.