• Renewed USD buying interest helped reverse an early dip to sub-1.3200 level.
• Bullish oil prices continue to underpin Loonie and seemed to cap further gains.
• Focus remains glued to the upcoming release of US consumer inflation figures.
The USD/CAD pair built on its steady intraday ascent and is currently placed at the top end of its daily trading range, around the 1.3240-45 region.
After yesterday's modest profit-taking slide, the US Dollar regained some positive traction and was seen as one of the key factors behind the pair's intraday turnaround from sub-1.3200 level, or one-week lows.
The greenback found some support growing optimism over a possible US-China trade deal and the overnight news that the US lawmakers have reached a tentative budget deal to avert another partial government shutdown.
The pair has now recovered around 50-pips from daily lows, albeit the prevalent positive mood around crude oil prices continued underpinning the commodity-linked Loonie and kept a lid on any strong follow-through.
The upward bias around the black gold remained intact after top exporter Saudi Arabia said it would cut crude exports and deliver an even deeper cut to its production and amid rising concerns over supply disruption led by the US sanctions on Venezuela.
Moreover, investors also seemed reluctant to place any aggressive bets ahead of today's key release of the latest US consumer inflation figures. Hence, it would be prudent to wait for a strong follow-through before positioning for any further intraday appreciating move.
Technical levels to watch
Immediate resistance is pegged near the 1.3265-70 region, above which the pair is likely to aim towards decisively breaking through the 1.3300-1.330 supply zone. On the flip side, the 1.3200-1.3195 region now becomes immediate support to defend, which if broken might accelerate the fall back towards challenging the very important 200-day SMA support near the 1.3240-35 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold reaches to all-time highs near $2,230, US PCE eyed
Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.