• USD/CAD takes offers to renew multi-day bottom, down for the third consecutive day.
  • Oil prices benefit from cautious optimism concerning Omicron, geopolitical fears.
  • Quebec set a curfew to slow down the virus increase, US reports record high covid cases.
  • Lack of major data/events could offer a sluggish end to 2021 but bears are likely to turn hopeful.

USD/CAD remains on the back foot for the third consecutive day, taking offers around 1.2730 to refresh multi-day low during the early Friday morning in Europe.

The latest weakness in the USD/CAD prices could be linked to the consolidation in the market’s early Asian risk-off mood, as well as mildly bid oil prices. However, thin end-of-year liquidity conditions and an absence of major data/events could restrict the pair’s immediate moves.

WTI crude oil prices, Canada’s main export item, add 0.05% intraday while taking rounds to the five-week top flashed the previous day. Behind the oil’s moves could be the market’s hopes of fewer health emergencies due to the South African covid variant, namely Omicron, as well as fears of geopolitical tension in the Middle East.

Read: WTI justifies Thursday’s bearish Doji, ignores China PMI to ease around $76.00

It’s worth noting that the global policymakers, ex-Canada, seem to take Omicron a bit lightly as the majority of them have refrained from major lockdown majors around the year-end celebrations. However, Quebec is the odd one out to put a 10:00 pm to 5:00 am curfew in place. On the other hand, Reuters’ tally for the US seven-day average of new coronavirus cases refreshes record top for the second consecutive day with 290,000 latest figures.

Talking about the geopolitics, Iran’s space launch derails previous optimism concerning the denuclearization deal with the global leaders. On the same line were the dislikes of China and Hong Kong for the US push to release Hong Kong-based journalists. Also portraying the fears of the geopolitical tension were the headlines from Reuters over Ukraine, “US President Joe Biden and his Russian counterpart Vladimir Putin on Thursday warned each other that an escalation of tensions over Ukraine could rupture relations between the two countries, U.S. and Russian officials said.”

Amid these plays, the Wall Street benchmarks posted mild losses whereas the S&P 500 Futures pare intraday losses, recently down 0.20% on a day.

To sum up, USD/CAD bears are likely to keep reins amid firmer oil and currently improving market sentiment. However, the year-end liquidity crunch may restrict the pair’s moves for the day.

Read: USD/CAD Price Forecast 2022: One reason the loonie will outperform other currencies against the US dollar

Technical analysis

While refreshing the multi-day low, the USD/CAD pair broke an ascending support line, now resistance, from November 10, which in turn joins descending Momentum line to favor sellers. That said, 38.2% Fibonacci retracement of October-December upside, around 1.2705, can restrict the quote’s immediate declines before directing USD/CAD sellers towards the 50-DMA level of 1.2655.

Alternatively, recovery moves remain elusive below a confluence of the previous support line and 21-DMA, near 1.2800.

Additional important levels

Overview
Today last price 1.273
Today Daily Change -0.0017
Today Daily Change % -0.13%
Today daily open 1.2747
 
Trends
Daily SMA20 1.2799
Daily SMA50 1.2648
Daily SMA100 1.2626
Daily SMA200 1.2498
 
Levels
Previous Daily High 1.2813
Previous Daily Low 1.2738
Previous Weekly High 1.2964
Previous Weekly Low 1.2786
Previous Monthly High 1.2837
Previous Monthly Low 1.2352
Daily Fibonacci 38.2% 1.2766
Daily Fibonacci 61.8% 1.2784
Daily Pivot Point S1 1.2719
Daily Pivot Point S2 1.2691
Daily Pivot Point S3 1.2644
Daily Pivot Point R1 1.2794
Daily Pivot Point R2 1.2841
Daily Pivot Point R3 1.2869

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.

EUR/USD News

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 

GBP/USD News

Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures