USD/CAD refreshes session lows amid notable USD supply

USD/CAD drifts into the negative territory for the second consecutive session on Thursday.
The heavily offered tone surrounding the USD was seen as a key factor exerting pressure.
An intraday bounce in crude oil prices underpinned the loonie and added to the selling bias.

Haresh Menghani FXStreet

The USD/CAD pair edged lower during the early North American session and refreshed daily lows, around the 1.3120 region in the last hour.

The pair failed to capitalize on its early uptick, instead met with some fresh supply near the 1.3170 area and retreated further from over three-week tops set in the previous session. The downtick was exclusively sponsored by the emergence of some fresh selling around the US dollar.

The greenback was being weighed down by a strong pickup in the shared currency after the ECB President Christine Lagarde said that there is no need to overreact to euro's recent gains. This coupled with a strong opening in the US equity markets further undermined the USD's safe-haven demand.

Even a strong rebound in the US Treasury bond yields failed to impress the USD bulls or lend any support to the USD/CAD pair. Meanwhile, an intraday bounce in crude oil prices provided an additional boost to the commodity-linked loonie and contributed to the pair's intraday pullback.

Despite the negative move over the past two trading session, the USD/CAD pair has still managed to hold with modest weekly gains. This makes it prudent to wait for some strong follow-through selling before traders start positioning for the resumption of the prior/well-established bearish trend.

Market participants now look forward to a scheduled speech by the BoC Governor Tiff Macklem for some meaningful impetus. Given the muted reaction to Wednesday's BoC decision, Macklem's comments might prove to be a non-event for the USD/CAD pair.

Technical levels to watch

USD/CAD

Overview
Today last price	1.314
Today Daily Change	-0.0006
Today Daily Change %	-0.05
Today daily open	1.3146

Trends
Daily SMA20	1.3152
Daily SMA50	1.3331
Daily SMA100	1.3557
Daily SMA200	1.3521

Levels
Previous Daily High	1.326
Previous Daily Low	1.3146
Previous Weekly High	1.3162
Previous Weekly Low	1.2994
Previous Monthly High	1.3451
Previous Monthly Low	1.302
Daily Fibonacci 38.2%	1.3189
Daily Fibonacci 61.8%	1.3216
Daily Pivot Point S1	1.3108
Daily Pivot Point S2	1.307
Daily Pivot Point S3	1.2994
Daily Pivot Point R1	1.3222
Daily Pivot Point R2	1.3297
Daily Pivot Point R3	1.3335

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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