USD/CAD rebounds modestly after dropping below 1.3200 for first time since February

  • USD/CAD continues to trade deep in the negative territory.
  • Falling crude oil prices help USD/CAD recover modestly.
  • US Dollar Index inches lower toward 93.00 in American session.

The USD/CAD pair extended its daily slide during the American trading hours and touched its lowest level since February at 1.3190. However, the pair recovered modestly following that drop and was last seen trading at 1.3220, where it was still down 0.17% on a daily basis.

USD selloff continues

The broad-based selling pressure surrounding the greenback caused the bearish momentum of USD/CAD to pick up in the second half of the day. The data published by the US Department of Labor showed that Initial Jobless Claims came in below one million for the first time since March and helped the market sentiment remain upbeat. 

Despite a lack of progress in the US coronavirus aid bill talks, the risk-positive environment weighed on the USD and forced the US Dollar Index (DXY) to push lower toward 93.00. As of writing, the DXY was down 0.35% on the day at 93.09.

On the other hand, crude oil prices turned south in the last hour and made it difficult for the commodity-sensitive loonie to continue to gather strength against the buck. At the moment, the barrel of West Texas Intermediate is down 0.2% on the day at $42.45.

In the early trading hours of the Asian session on Friday, Industrial Production and Retail Sales data from China will be looked upon for fresh impetus. Better-than-expected figures could provide a boost to oil prices and allow the CAD to outperform its rivals. 

Technical levels to watch for


Today last price 1.3214
Today Daily Change -0.0032
Today Daily Change % -0.24
Today daily open 1.3246
Daily SMA20 1.3393
Daily SMA50 1.3493
Daily SMA100 1.374
Daily SMA200 1.3532
Previous Daily High 1.3347
Previous Daily Low 1.3229
Previous Weekly High 1.3451
Previous Weekly Low 1.3234
Previous Monthly High 1.3646
Previous Monthly Low 1.3331
Daily Fibonacci 38.2% 1.3274
Daily Fibonacci 61.8% 1.3302
Daily Pivot Point S1 1.3201
Daily Pivot Point S2 1.3156
Daily Pivot Point S3 1.3083
Daily Pivot Point R1 1.3319
Daily Pivot Point R2 1.3392
Daily Pivot Point R3 1.3437



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