USD/CAD refreshes session tops, around 1.3535 region post-US/Canadian data


  • USD/CAD once again defends 200-DMA and stages a goodish intraday bounce.
  • Worsening US-China relations extended some support to the safe-haven USD.
  • Weaker oil prices undermined the loonie and remained supportive of the uptick.

The USD/CAD pair dropped to fresh three-month lows, around the 1.3470-65 region in the last hour, albeit quickly recovered over 60-70 pips thereafter.

The US dollar struggled to preserve its early gains, instead witnessed some aggressive selling on the back of a strong rally in the shared currency post-ECB announcement. Some renewed USD weakness turned out to be one of the key factors that exerted some downward pressure on the USD/CAD pair.

However, a weaker tone around crude oil prices undermined the commodity-linked currency – the loonie – and helped limit the fall. The pair once again attracted some dip-buying near the very important 200-day SMA and was last seen trading near session tops, around the 1.3530 region.

Meanwhile, concerns about a further escalation in tensions between the USD and China extended some support to the greenback's safe-haven status. On the economic data front, the US Initial Weekly Jobless Claims came in higher-than-expected and did little to impress the USD bulls.

From Canada, the monthly trade balance data came in to show a deficit of C$ 3.25 billion for April as compared to C$ 2.36 billion expected and C$ 1.53 billion previous. The economic data failed to provide any meaningful impetus, albeit remained supportive of the bid tone surrounding the USD/CAD pair.

Given that the pair has been showing some resilience near a technically significant moving average, the set-up now supports prospects for some near-term short-covering move. Hence, a move towards the 1.3570-80 supply zone, en-route the 1.3600 mark, now looks a distinct possibility.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3522
Today Daily Change 0.0026
Today Daily Change % 0.19
Today daily open 1.3496
 
Trends
Daily SMA20 1.3882
Daily SMA50 1.3987
Daily SMA100 1.3734
Daily SMA200 1.3462
 
Levels
Previous Daily High 1.3572
Previous Daily Low 1.348
Previous Weekly High 1.4008
Previous Weekly Low 1.3715
Previous Monthly High 1.4173
Previous Monthly Low 1.3715
Daily Fibonacci 38.2% 1.3516
Daily Fibonacci 61.8% 1.3537
Daily Pivot Point S1 1.346
Daily Pivot Point S2 1.3424
Daily Pivot Point S3 1.3368
Daily Pivot Point R1 1.3552
Daily Pivot Point R2 1.3608
Daily Pivot Point R3 1.3644

 

 

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