USD/CAD retreats from high despite of mildly weaker oil prices

Haresh Menghani FXStreet

The USD/CAD pair snapped three days of losing streak and staged a tepid recovery on Monday, albeit has retreated few pips from session peak.

Currently trading around 1.3135 area, a broad based US Dollar recovery, from Friday's three-week low, helped the pair to defend the very important 200-day SMA, at least for the time being. Moreover, a mildly negative sentiment surrounding oil prices, with WTI crude oil correcting to $52.20 level, was seen weighing on the commodity-linked currency - Loonie, and collaborating with the pair's tepid recovery.

The recovery, however, lacked momentum amid lower-than-usual trading volumes in the Martin Luther King holiday in the US markets. Moreover, investors preferred to remain on the sidelines ahead of this week's key event risks - BOC monetary policy decision on Wednesday and President-elect Donald Trump’s inauguration on Jan. 20.

Technical levels to watch

A follow through retracement below 1.3115-10 immediate support now seems to find support near the very important 200-day SMA near 1.3095 region below which the pair is likely to head back towards testing last week's multi-month lows support near 1.3030 region.

On the upside, sustained move above session peak resistance near 1.3155-60 region is likely to accelerate the recovery move towards 1.3200 handle ahead of its next horizontal resistance near 1.3235-40 region.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.3176

60% Bullish
40% Bearish
0% Sideways

Bias Bullish

1 Month

Avg Forecast 1.3236

54% Bullish
31% Bearish
15% Sideways

Bias Bullish

1 Quarter

Avg Forecast 1.3413

67% Bullish
22% Bearish
11% Sideways

Bias Bullish

Author

Haresh Menghani

FXStreet

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

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold moves closer to $5,150 amid sustained safe-haven flows

Gold climbs back above $5,100 during the Asian session on Wednesday, moving away from an over one-week low, touched the previous day. Sustained safe-haven flow, amid escalating geopolitical tensions in the Middle East, acts as a tailwind for the bullion. However, a bullish US Dollar and reduced bets for more aggressive easing by the US Fed might keep a lid on the non-yielding yellow metal ahead of the US ADP report and ISM Services PMI later today.