- US dollar strengthens versus commodity currencies as stocks and crude oil slide.
- USD/CAD extends gains during the American session, upside still seen as corrective.
The USD/CAD is rising on Thursday after posting on Wednesday the lowest daily close since early July. The pair bottomed at 1.2288 on Asian hours and then bounced to the upside. During the American session it printed a fresh daily high at 1.2353 and then pulled back to 1.2345.
The main trend in USD/CAD continues to point to the downside and the current move higher could be seen as corrective. The pair needs a daily close under 1.2300 to suggest bears are still in control.
The US dollar is holding onto daily gains across the board, except versus the Japanese yen. The DXY is up by 0.03%, ending a six-day negative streak. Higher US yields and a deterioration in market sentiment helped the greenback. The USD/CAD also finds support from a correction in crude oil prices. The WTI barrel is pulling back from multi-year highs, and trades under $81.00.
US economic data showed a decline in Initial Jobless Claims to the lowest since March 2020 below 300K. On the negative front, the Philly Fed retreated from 30.7 to 23.8 (consensus: 25). Existing Home Sales rebounded more than expected by 7% in September. Home prices rose 0.4% in September in Canada.
On Friday, preliminary Markit PMI is due in the US and in Canada the August retail sales report with preliminary numbers for September.
Technical levels
USD/CAD
Overview
Today last price1.234
Today Daily Change0.0020
Today Daily Change %0.16
Today daily open1.232
Trends
Daily SMA201.2534
Daily SMA501.2607
Daily SMA1001.2509
Daily SMA2001.2501
Levels
Previous Daily High1.237
Previous Daily Low1.2307
Previous Weekly High1.2498
Previous Weekly Low1.2337
Previous Monthly High1.2896
Previous Monthly Low1.2494
Daily Fibonacci 38.2%1.2331
Daily Fibonacci 61.8%1.2346
Daily Pivot Point S11.2295
Daily Pivot Point S21.227
Daily Pivot Point S31.2233
Daily Pivot Point R11.2357
Daily Pivot Point R21.2395
Daily Pivot Point R31.242
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