USD/CAD rejected from above 1.2920 on a volatile session for the dollar

Volatile session across financial markets after ECB meeting.
US Dollar without a clear direction, US yields tumble.
USD/CAD holds onto weekly losses as recovery fades above 1.2900.

Matías Salord FXStreet

The USD/CAD reversed and dropped back below 1.2900 in a volatile session for financial markets following the European Central Bank meeting and US data.

The pair peaked at 1.2935 and then pulled back. It is hovering around 1.2880, flat for the day and approaching the weekly low, near the strong support zone of 1.2850.

The rejection from above 1.2900/05 (horizontal levels, and 20 and 200 Simple Moving Average in four-hour chart) reinforced the bearish short-term bias. If USD/CAD consolidates above it would point to further gains.

USD/CAD 4-hour chart

Data, ECB and uncertainty

Equity markets are posting modest losses, but the dollar is not benefiting from this as US yields are falling sharply. The US 10-year stands at 2.92%, the lowest since Monday, and the 30-year at 3.06%. Crude oil prices are falling more than 3%.

US economic data weighed on the US dollar on Thursday. Initial Jobless Claims rose more than expected to the highest level in eight months while Continuing Claims also rose above expectations to the highest in eleven weeks. The Philly Fed tumbled unexpectedly. On Friday, Canada will report May retail sales and the US the flash July S&P Global PMI.

Technical levels

USD/CAD

Overview
Today last price	1.2904
Today Daily Change	0.0021
Today Daily Change %	0.16
Today daily open	1.2883

Trends
Daily SMA20	1.2951
Daily SMA50	1.2859
Daily SMA100	1.2771
Daily SMA200	1.2707

Levels
Previous Daily High	1.2907
Previous Daily Low	1.2855
Previous Weekly High	1.3224
Previous Weekly Low	1.2936
Previous Monthly High	1.3079
Previous Monthly Low	1.2518
Daily Fibonacci 38.2%	1.2887
Daily Fibonacci 61.8%	1.2875
Daily Pivot Point S1	1.2856
Daily Pivot Point S2	1.283
Daily Pivot Point S3	1.2804
Daily Pivot Point R1	1.2908
Daily Pivot Point R2	1.2934
Daily Pivot Point R3	1.296

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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