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 flirts with 1.1100 as the dollar loses steam

The EUR/USD pair bounced from a daily low of 1.1065, as demand for the greenback receded during US trading hours. Upside caped for the shared currency amid fears of a German recession, Italian political turmoil.

EUR/USD News

GBP/USD pressures recent highs amid renewed Brexit hopes

Comments from German Chancellor Merkel gave the Pound a lift, as somehow she hinted that the EU would consider an alternative to the Irish backstop.

GBP/USD News

USD/JPY slides to 106.30 area as US T-bond yields turn south

10-year US Treasury bond yield erases Monday's recovery gains. US Dollar Index preserves strength to limit pair's losses. Risk sentiment is likely to continue to drive pair's action.

USD/JPY News

Gold retreats from daily highs, continues to trade above $1,500

The XAU/USD pair took advantage of the risk-off flows earlier in the day and erased a large portion of the losses it suffered on Monday. After touching a daily high of $1,508.45, however, the precious metal lost its strength and edged lower toward the $1,500 handle. 

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Planning the next bullish move after consolidating gains

Trading cryptos is not a one-way street – meteoric unstoppable gains belong to the past. Nevertheless, the bullish sentiment seems to prevail. Digital coins advanced on Monday and are consolidating on Tuesday. 

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •