• 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.
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.
Recommended content
Editors’ Picks
Gold: Record-setting rally remains intact ahead of US PCE data
Gold price refreshes a fresh all-time peak, closing on the $3,100 mark. The global risk sentiment continues to be undermined by worries over Donald Trump's auto tariffs announced earlier in the week, with traders rushing for safety in Gold price. US PCE inflation data awaited.
EUR/USD trades with mild losses below 1.0800, awaits US PCE
EUR/USD is on the back foot below 1.0800 early Friday, struggling to capitalize on the previous day's goodish bounce. Trump's tariff jitters keep investors on the edge, leaving the pair gyrating in a range ahead of the key US PCE inflation data.
GBP/USD holds steady near 1.2950 after UK data
GBP/USD stays quiet and fluctuates near 1.2950 in the European session on Friday. Uncertainty over US President Trump's tariff plans weigh on risk mood and caps the pair's upside, even after February Retail Sales data from the UK came in better than expected.
US core PCE inflation expected to remain sticky, reinforcing Federal Reserve’s cautious stance on rate cuts
The United States Bureau of Economic Analysis is set to release the PCE Price Index data for February on Friday at 12:30 GMT. The core Personal Consumption Expenditures Price Index is expected to rise 0.3% MoM and 2.7% YoY in February.
US: Trump's 'Liberation day' – What to expect?
Trump has so far enacted tariff changes that have lifted the trade-weighted average tariff rate on all US imports by around 5.5-6.0%-points. While re-rerouting of trade will decrease the effectiveness of tariffs over time, the current level is already close to the highest since the second world war.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.