USD/CAD pulls away from 19-month highs, trades around 1.3600

Broad-based USD weakness doesn't allow the pair to extend its rally.
WTI trades in a tight range above the $45 handle.
Coming up: Trade balance and housing data from the U.S.

Eren Sengezer FXStreet

After posting its highest daily close since mid-May of 2017 at 1.3620, the USD/CAD pair stays relatively quiet on Friday as thin trading conditions ahead of the New Year break keep the price action subdues. As of writing, the pair was trading at 1.3603, losing 15 pips on a daily basis.

Despite the broad-based USD weakness on Thursday, the pair was able to push higher above the 1.36 mark as the falling crude oil prices weighed on the commodity-related loonie. With the barrel of West Texas Intermediate trading in a tight range above the $45 mark and the US Dollar Index extending its slide today, the pair found an opportunity to correct its recent uptrend. Later in the session, the EIA is going to publish its weekly oil report, which could cause sharp fluctuations in crude oil prices.

Meanwhile, ahead of the trade balance and home sales data, the US Dollar Index is losing 0.35% on a daily basis at 96.25.

Technical levels to consider

The initial resistance for the pair aligns at 1.3660 (Dec. 27 high) ahead of 1.3720 (May 15, 2017, high) and 1.3790 (May 5, 2017, high). On the downside, supports are located at 1.3575 (Dec. 27 low), 1.3490/1.3500 (Dec. 21 low/psychological level) and 1.3445 (Dec. 20 low).

Technical levels to watch

USD/CAD

Overview:
    Today Last Price: 1.3598
    Today Daily change: -19 pips
    Today Daily change %: -0.140%
    Today Daily Open: 1.3617
Trends:
    Previous Daily SMA20: 1.3453
    Previous Daily SMA50: 1.3284
    Previous Daily SMA100: 1.3149
    Previous Daily SMA200: 1.3057
Levels:
    Previous Daily High: 1.3662
    Previous Daily Low: 1.3566
    Previous Weekly High: 1.3602
    Previous Weekly Low: 1.3372
    Previous Monthly High: 1.336
    Previous Monthly Low: 1.3048
    Previous Daily Fibonacci 38.2%: 1.3625
    Previous Daily Fibonacci 61.8%: 1.3603
    Previous Daily Pivot Point S1: 1.3569
    Previous Daily Pivot Point S2: 1.352
    Previous Daily Pivot Point S3: 1.3474
    Previous Daily Pivot Point R1: 1.3664
    Previous Daily Pivot Point R2: 1.371
    Previous Daily Pivot Point R3: 1.3759

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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