USD/CAD rebounds from monthly lows, lacks follow-through beyond 1.3900 mark

USD/CAD staged a modest recovery from fresh monthly lows, around mid-1.3800s.
A sudden pickup in the USD demand seemed to be the only factor behind the uptick.
Bullish oil prices might continue to underpin the loonie and cap any further gains.

Haresh Menghani FXStreet

The USD/CAD pair jumped to fresh session lows and was now looking to build on the intraday positive move further beyond the 1.3900 mark.

The pair stalled its recent sharp retracement slide to fresh monthly lows and managed to find some support near mid-1.3800s amid a sudden pickup in the US dollar demand. Following a lacklustre trading action through the major part of Thursday's trading action, the greenback gained some traction during the early North-American session.

The USD positive move followed the release of the US Initial Weekly Jobless Claims, which added to the recent market concerns about the economic fallout from the coronavirus-induced lockdowns. This coupled with a turnaround in the sentiment surrounding the equity markets provided an additional boost to the greenback's perceived safe-haven status.

Meanwhile, the Canadian dollar was further weighed down by the release of the worse-than-expected Raw Materials Price Index and monthly GDP print from Canada. However, the recent strong bullish run in crude oil prices might continue to underpin the commodity-linked currency – the loonie – and keep a lid on any runaway rally for the major.

Hence, it will be prudent to wait for some strong follow-through buying before confirming that the pair might have bottomed out in the near-term and positioning for any further near-term recovery, possibly back towards the key 1.40 psychological mark.

Technical levels to watch

USD/CAD

Overview
Today last price	1.391
Today Daily Change	0.0029
Today Daily Change %	0.21
Today daily open	1.3881

Trends
Daily SMA20	1.4049
Daily SMA50	1.3904
Daily SMA100	1.3525
Daily SMA200	1.3378

Levels
Previous Daily High	1.4004
Previous Daily Low	1.3876
Previous Weekly High	1.4265
Previous Weekly Low	1.4
Previous Monthly High	1.4668
Previous Monthly Low	1.3315
Daily Fibonacci 38.2%	1.3925
Daily Fibonacci 61.8%	1.3955
Daily Pivot Point S1	1.3837
Daily Pivot Point S2	1.3792
Daily Pivot Point S3	1.3709
Daily Pivot Point R1	1.3965
Daily Pivot Point R2	1.4049
Daily Pivot Point R3	1.4093

Author

Haresh Menghani

FXStreet

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

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