USD/CAD pulls away from multi-month highs, clings to small daily gains near 1.3400

  • WTI rebounds modestly from 13-month lows, still down more than 3%.
  • US Dollar Index fails to hold on to earlier recovery gains.
  • USD/CAD looks to register weekly gains of more than 150 pips.

The USD/CAD pair rose to its highest level since June at 1.3464 during the early trading hours of the American session on Friday but struggled to preserve its momentum and erased a large portion of its daily gains.

As of writing, the pair was up 0.15% on the day at 1.3408. Despite this recent pullback, however, the pair remains on track to close the week more than 150 pips higher boosted by plummeting crude oil prices. 

Oil selloff continues to hurt CAD

The heavy selling pressure surrounding crude oil since the start of the week made it difficult for the CAD to find demand. Amid heightened concerns over the coronavirus outbreak weighing on the global energy demand, the barrel of West Texas Intermediate erased 16% this week and touched its lowest level since December 2018 at $43.83. At the moment, the WTI is down 3.3% on the day at $44.80.

On the other hand, rising odds of a Fed rate cut in March and falling Treasury bond yields throughout the week forced the greenback to weaken against its rivals and limited the pair's upside.

The US Dollar Index, which started the week at 99.34, looks to finish the week around 1% lower near 98.30. Earlier in the day, the data published by the US Bureau of Economic Analysis showed that the annual core PCE Price Index ticked up to 1.6% in January and Personal Income rose 0.6% on a monthly basis but the positive impact of these figures on the USD remained short-lived.

On the other hand, Statistics Canada reported that the real GDP expanded 0.3% on a quarterly basis in the fourth quarter as expected.

Technical levels to watch for


Today last price 1.3409
Today Daily Change 0.0027
Today Daily Change % 0.20
Today daily open 1.3382
Daily SMA20 1.3278
Daily SMA50 1.3162
Daily SMA100 1.3178
Daily SMA200 1.3212
Previous Daily High 1.3384
Previous Daily Low 1.3316
Previous Weekly High 1.328
Previous Weekly Low 1.3202
Previous Monthly High 1.3255
Previous Monthly Low 1.29
Daily Fibonacci 38.2% 1.3358
Daily Fibonacci 61.8% 1.3342
Daily Pivot Point S1 1.3338
Daily Pivot Point S2 1.3293
Daily Pivot Point S3 1.3269
Daily Pivot Point R1 1.3406
Daily Pivot Point R2 1.3429
Daily Pivot Point R3 1.3474



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD clings to recovery gains above 1.1350 after EU inflation data

EUR/USD gained traction and climbed to its highest level in more than 10 days above 1.1360 amid the broad-based selling pressure surrounding the greenback. The data from the euro area showed that the annual CPI jumped to 4.9% in November from 4.1% in October, helping the shared currency preserve its strength.


GBP/USD advances to mid-1.3300s on renewed dollar weakness

GBP/USD gathered bullish momentum during the European trading hours and climbed to 1.3350 area as the greenback remains under selling pressure amid slumping US Treasury bond yields. Investors await FOMC Chairman Powell's testimony.


Gold eyes $1,800 and $1,806 on road to recovery

The precious metal has staged a decent comeback, as bulls look to recapture the $1,800 mark amid a revival of the Omicron covid variant fears. A flight to safety theme remains in vogue killing the demand for the yields.

Gold News

XRP price on edge of cliff as Ripple faces imminent collapse

XRP price followed the rest of the cryptocurrency market lower over the weekend. The US Thanksgiving holiday gave cryptocurrency traders and investors some early Black Friday deals, but downside risks remain.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!