USD/CAD recovers a major part of early slide to sub-1.3200 level, or 1-week lows

   •  Bullish oil prices continue to underpin Loonie and kept exerting downward pressure.
   •  The USD attracts some fresh buying at lower levels and helped bounce off daily lows.
   •  Traders look forward to the latest US consumer inflation figures for some fresh impetus.

The USD/CAD pair remained under some selling pressure for the second straight session, albeit has managed to trim a part of its early losses to sub-1.3200 level, or one-week lows.

After repeated failures to preserve/build on the momentum further beyond the 1.3300 handle, a combination of factors prompted some long-unwinding trade in the previous session and the retracement slide extended through the Asian session on Wednesday.

A strong rebound in crude oil prices turned out to be a factor that underpinned the commodity-linked currency- Loonie, which coupled with a modest USD pull-back from multi-week tops exerted some downward pressure through Tuesday’s trading session.

Oil prices remained supported by Tuesday's OPEC monthly report, showing that output in January fell by 800,000 bpd to 30.81 million bpd, albeit was partly offset by renewed US Dollar buying that helped the pair to rebound around 30-pips from daily lows.

It would now be interesting to see if the pair is able to build on the recovery move or meets with some fresh supply at higher levels as the focus now shifts to the US economic docket, highlighting the release of the latest US consumer inflation figures later during the early North-American session.

Technical levels to watch

Any subsequent recovery now seems to confront immediate resistance near the 1.3265 level, above which the pair is likely to make a fresh attempt to reclaim, rather build on the momentum beyond the 1.3300 round figure mark.

On the flip side, the 1.3200-1.3195 region now becomes immediate support to defend, which if broken now seems to accelerate the ongoing slide back towards the very important 200-day SMA support near the 1.3135 region.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD steady around 1.1240 in ultra-thin holiday's trading

The EUR/USD pair bounced some 20 pips from its weekly low during the Asian session, now mute around 1.1240 with most market's off today. Softer-than-expected US housing data passed unnoticed.


GBP/USD battling around 1.3000

The GBP/USD pair is heading nowhere fast after bottoming for the week at 1.2978, amid lack of progress in Brexit negotiations.  Encouraging UK data failed to trigger Pound's demand.


USD/JPY: On track to close in the middle of its 50-pip weekly range below 112

The USD/JPY pair remains frozen below the 112 handle in the NA session and there is no reason for it to make a meaningful move as investors are already enjoying the Easter holiday.


The Tale of the Prosperous Consumer-US Retail Sales

American consumers asserted the right to spend in a grand fashion in March boosting retail sales to the fastest expansion in 18 months as the booming job market put the shutdown marked holiday season to rest.

Read more

Gold Forecast: Eyes 8-month rising trendline after weakest weekly close since December

The troy ounce of the precious metal lost around $17 this week and now looks to record its lowest weekly close since the end of December near $1275.

Gold News