USD/CAD recovers overnight losses, jumps back to 1.3200 mark


   •  USD catches fresh bids on Thursday and helps regain positive traction.
   •  Weaker oil prices weigh on Loonie and provide an additional boost.

The USD/CAD pair caught some fresh bids on Thursday, with bulls now eyeing a move back above the 1.3200 handle.

A combination of supporting factors helped the pair to stall overnight sharp retracment slide from 2-1/2 week tops and find decent buying interest near the 1.3160 region. 

The US Dollar remained supported by upbeat economy outlooks from the Fed Chair Jerome Powell and the central bank’s Beige Book report, which reinforced gradual Fed rate hike prospects. 

This coupled with a negative trading sentiment around crude oil prices weighed on the commodity-linked currency - Loonie and provided an additional boost.

The pair has now recovered all of its previous session's losses and a follow-through up-move, led by some fresh buying/short-covering, now looks a distinct possibility. 

Today's economic docket, featuring the release of Canadian ADP National Employment Report, along with Philly Fed Manufacturing Index and the usual initial weekly jobless claims data from the US, will now be looked upon for some fresh impetus.

Technical levels to watch

Immediate resistance is pegged near the 1.3215 level, above which the pair is likely to head back towards retesting overnight swing high level of 1.3260 before eventually darting to reclaim the 1.3300 mark.

On the flip side, the 1.3165-60 area now seems to have emerged as an immediate support, which if broken might turn the pair vulnerable to slide back towards 1.3130 support en-route the 1.3100 handle. 
 

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

Euro rolling into the Asian session near one-month lows

The Fiber, on the daily chart, is trading in a downtrend below its main daily simple moving averages (DMAs). The Fiber was week on the second day of the week. The level to beat for bears is the 1.0995 support level.

EUR/USD News

GBP/USD: Doji on D1, lower highs setup portray Cable weakness

Not only lower highs since late-October but a bearish candlestick formation also portrays the GBP/USD pair’s weakness as it takes rounds to 1.2855 during the early Asian session on Wednesday.

GBP/USD News

USD/JPY supported at 10-DMA amid risk-off, eyes US CPI, Powell

USD/JPY bounced-off the10-DMA support near 108.85 and regained the 109 handle, despite the risk-off action in the Asian equities and US equity futures amid trade deal uncertainty. The bulls seem to have found some support from higher US Treasury yields. 

USD/JPY News

Gold fails to hold on to recovery amid USD strength, trade woes

Although pessimism surrounding the US trade relations with China and the EU, coupled with Hong Kong protests, favored Gold to bounce off multi-month lows on Tue, prices are again under pressure while taking rounds to $1,458 during today’s Asian session.

Gold News

UK inflation report outlook: GBP/USD may stumble on another CPI slide

Headline Consumer Price Index (CPI) has missed expectations in the past two months by standing at 1.7% annual. Economists seem to have adapted their expectations and forecast a further deceleration to 1.6% in October's inflation report. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures