USD/CAD rebounds modestly from weekly lows, stays below 1.2300

  • USD/CAD dropped to a weekly low of 1.2251 on Wednesday.
  • Retail Sales in Canada fell at a stronger pace than expected in April.
  • US Dollar Index stays in the negative territory after mixed PMI data.

The USD/CAD pair extended its daily slide and touched its lowest level in a week at 1.2251 during the early trading hours of the American session on Wednesday. However, the pair managed to stage a recovery in the last hour and was last seen losing 0.15% on the day at 1.2287.

WTI holds near multi-year highs

Despite the broad-based USD weakness and rising crude oil prices, the disappointing data from Canada seems to be making it difficult for the CAD to preserve its strength. Statistics Canada reported that Retail Sales declined by 5.7% on a monthly basis in April, compared to analysts' estimate for a decrease of 5%.

Meanwhile, the barrel of West Texas Intermediate (WTI), which touched its highest level since October 2018 at $74.22, is rising 0.8% on the day at $73.80, helping the commodity-related loonie limit its losses for the time being. A report by the Wall Street Journal claiming that the OPEC+ was planning to increase the group's output by 500,000 barrels per day when they meet next week seems to be supporting crude oil prices.

On the other hand, the data from the US revealed that the Markit Manufacturing PMI reached a new series high of 62.6 in June's preliminary reading. On a negative note, the Markit Services PMI declined to 64.8 in June from 70.4 in May and missed the market expectation of 70 by a wide margin. Following these mixed figures, the US Dollar Index (DXY) extended its slide to a daily low of 91.51 before regaining its traction. 

With Wall Street's main indexes posting modest losses after the opening bell, the DXY erased a portion of its losses and was last seen trading flat on the day near 91.70.

Technical levels to watch for


Today last price 1.2285
Today Daily Change -0.0021
Today Daily Change % -0.17
Today daily open 1.2306
Daily SMA20 1.2164
Daily SMA50 1.2228
Daily SMA100 1.2419
Daily SMA200 1.2704
Previous Daily High 1.2403
Previous Daily Low 1.2302
Previous Weekly High 1.2481
Previous Weekly Low 1.2128
Previous Monthly High 1.2352
Previous Monthly Low 1.2013
Daily Fibonacci 38.2% 1.2341
Daily Fibonacci 61.8% 1.2365
Daily Pivot Point S1 1.2271
Daily Pivot Point S2 1.2236
Daily Pivot Point S3 1.217
Daily Pivot Point R1 1.2372
Daily Pivot Point R2 1.2438
Daily Pivot Point R3 1.2473



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