USD/CAD: Probes weekly top beyond 1.3200, bulls in command


  • USD/CAD seesaws around intraday high after printing the biggest gains in a week.
  • Global markets turn risk-averse following the Fed’s reluctance to offer further stimulus.
  • US dollar rally, WTI weakness and risk-off mood recall the buyers.
  • US Jobless Claims, Canadian ADP Employment Change awaited for fresh impulse.

USD/CAD prints 0.40% intraday gain while trading near 1.3230 during the pre-European session on Thursday. The quote becomes no exception to the market’s major affection towards the US dollar after the previous day’s Federal Reserve (Fed) monetary policy meeting. Also please the pair buyers could be the weakness in oil prices, Canada’s biggest exports, as well as risk aversion that tames the commodity-linked currencies like the Canadian dollar (CAD).

The Federal Open Market Committee’s (FOMC) pause for further rate cuts joined the upwardly revised quarterly economic forecasts to suggest that the world’s key central bank may push brakes over the further easy money. The same disappointment market players since late- Wednesday and is playing the role by now.

While the equities are mourning over the Fed’s cautious optimism, commodities and the linked currencies are afraid of the US dollar’s gains. The US dollar index (DXY) adds over 0.33% to currently around 93.40 after rising to more than a one-week high of 93.60 before a few minutes.

Other than the greenback weakness, that weighs on the WTI oil prices, cautious sentiment ahead of the Organization of the Petroleum Exporting Countries (OPEC) and Russia, mostly known as OPEC+, also result in a 1.27% loss by the black gold to $39.89 now. Additionally, US President Donald Trump's dislike for the World Trade Organization’s (WTO) favor for China rekindled fears of a fresh trade war, which in turn drags the energy benchmark.

Against this backdrop, stocks in Asia-Pacific and the S&P 500 Futures are down over 1.0% on average whereas the US 10-year Treasury yields drop one basis point to 0.679% as we write.

Looking forward, Canada’s monthly ADP Employment Change for August, expected 901.8K versus 1149.8K prior, will join the US weekly Initial Jobless Claims, forecast 850K against 884K previous readouts, to direct the short-term USD/CAD moves.

Technical analysis

FXStreet’s Ross J Burland spots inverse head-and-shoulders pattern on the four-hour chart to suggest further buying opportunity.

Read: USD/CAD Price Analysis: Bulls finally catching a break?

Additional important levels

Overview
Today last price 1.3229
Today Daily Change 51 pips
Today Daily Change % 0.39%
Today daily open 1.3178
 
Trends
Daily SMA20 1.3143
Daily SMA50 1.3294
Daily SMA100 1.3516
Daily SMA200 1.352
 
Levels
Previous Daily High 1.3201
Previous Daily Low 1.3128
Previous Weekly High 1.326
Previous Weekly Low 1.3053
Previous Monthly High 1.3451
Previous Monthly Low 1.302
Daily Fibonacci 38.2% 1.3155
Daily Fibonacci 61.8% 1.3173
Daily Pivot Point S1 1.3137
Daily Pivot Point S2 1.3096
Daily Pivot Point S3 1.3064
Daily Pivot Point R1 1.321
Daily Pivot Point R2 1.3242
Daily Pivot Point R3 1.3283

 

 

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