USD/CAD recovers early lost ground, bulls await a sustained move beyond 1.3200 mark

USD/CAD attracted some dip-buying near mid-1.3100s and moved back closer to session tops.
A sharp intraday turnaround in crude oil prices undermined the loonie and remained supportive.
The USD bulls stayed depressed despite hotter-than-expected US CPI and capped the upside.

Haresh Menghani FXStreet

The USD/CAD pair recovered around 45 pips from daily lows, albeit seemed struggling to extend the momentum and remained capped below the 1.3200 mark.

The pair failed to capitalize on the previous day's goodish positive move of around 80 pips and met with some fresh supply on the last day of the trading week. The USD/CAD pair dropped to an intraday low level of 1.3151 and was being pressured by a weaker tone surrounding the US dollar.

The greenback remained depressed through the early North American session amid uncertainty over the next round of the US fiscal stimulus measures and a pickup in the shared currency. The USD bulls failed to gain any respite from Friday's hotter-than-expected US CPI print for August.

Adding to this, a strong opening in the US equity markets further dented the greenback's relative safe-haven status and weighed on the USD/CAD pair. However, a sharp intraday fall in crude oil prices undermined the commodity-linked loonie and extended some support to the major.

The uptick, however, lacked any strong follow-through and the USD/CAD pair held well within a broader trading range over the past three days or so. This makes it prudent to wait for a sustained move in either direction before traders start positioning for any meaningful intraday momentum.

Meanwhile, bulls are likely to wait for some follow-through buying beyond the 1.3200 mark, above which the USD/CAD pair seems all set to climb back to weekly tops, around the 1.3260 region. Conversely, weakness below mid-1.3100s might turn the pair vulnerable to break below the 1.3100 mark.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3187
Today Daily Change	-0.0006
Today Daily Change %	-0.05
Today daily open	1.3193

Trends
Daily SMA20	1.315
Daily SMA50	1.3324
Daily SMA100	1.3549
Daily SMA200	1.3521

Levels
Previous Daily High	1.3202
Previous Daily Low	1.3119
Previous Weekly High	1.3162
Previous Weekly Low	1.2994
Previous Monthly High	1.3451
Previous Monthly Low	1.302
Daily Fibonacci 38.2%	1.3171
Daily Fibonacci 61.8%	1.3151
Daily Pivot Point S1	1.314
Daily Pivot Point S2	1.3088
Daily Pivot Point S3	1.3057
Daily Pivot Point R1	1.3224
Daily Pivot Point R2	1.3255
Daily Pivot Point R3	1.3307

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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