USD/CAD remains capped below 1.2800 handle

Haresh Menghani FXStreet

• Weaker oil prices weigh on commodity-linked Loonie.
• USD holds stable but fails to provide any additional boost.

Having refreshed session lows near the 1.2755 region, the USD/CAD pair regained traction and might now be looking to make a fresh attempt towards conquering the 1.2800 handle.

A modest profit-taking slide around crude oil prices was seen weighed on the commodity-linked currency - Loonie and helped the pair to bounce off around 30-pips from lows. Adding to this, the US Dollar has also managed to rebound from daily lows and further collaborated to the pair's uptick over the past couple of hours.

Despite a good two-way move, the pair might continue with its struggle to decisively break through the 1.2800 handle amid ongoing uncertainty over the fate of a highly-anticipated US tax reform plan.

Hence, it would be prudent to wait for a strong follow-through buying interest before positioning for any additional near-term appreciating move amid empty economic docket.

Technical levels to watch

Momentum beyond the 1.2800 handle is likely to confront fresh supply near the 1.2820 region, above which a bout of short-covering could lift the pair further towards 1.2885 strong hurdle.

On the flip side, mid-1.2700s now seems to have emerged as immediate support, which if broken could accelerate the slide back toward the 1.2700 handle en-route its next major support near the 1.2670-60 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.