•  Combination of negative forces exerts some fresh downward pressure on Friday.
   •  The USD remains on the defensive amid a modest slide in the US bond yields. 
   •  Bullish run in oil prices underpin Loonie and add to the prevalent selling bias.

The USD/CAD pair quickly reversed an early European session dip to sub-1.3300 level and trimmed a part of its daily losses back closer to near two-week lows.

The pair traded with a bearish bias for the fifth session in the previous six, albeit bulls showed resilience at lower levels and once again helped the pair to find some support near the 1.3290-85 region.

The US Dollar failed to capitalize on the overnight attempted bounce and remained on the defensive on the last trading day of the week amid a modest downtick in the US Treasury bond yields. 

This coupled with the ongoing bullish run in crude oil prices provided an additional boost to the commodity-linked currency - Loonie and further collaborated to the weaker tone surrounding the major. 

The downside, however, remained limited, with the pair recovering around 20-25 pips from daily lows to currently trade around the 1.3310-15 region, though lacked any obvious fundamental catalyst.

Hence, it would be prudent to wait for a strong follow-through recovery before confirming that the pair might have actually bottomed out in the near-term and positioning for any near-term positive move. 

Moving ahead, today's release of Canadian manufacturing sales, along with second-tier US economic data will now be looked upon for fresh impetus and in order to grab some short-term trading opportunities. 

Technical levels to watch

Immediate resistance is pegged near the 1.3335-40 region, above which the pair is likely to aim towards reclaiming the 1.3400 round figure mark. On the flip side, the 1.3300-1.3290 area might continue to protect the immediate downside, which if broken might turn the pair vulnerable to accelerate the fall further towards 50-day SMA support, around the 1.3260 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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation

EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation

EUR/USD sellers are up and roaring as sour sentiment joins firmer yields to renew the downside during early Thursday, after a day full of surprises and positive performance. Germany’s HICP may not impress pair buyers unless US GDP disappoints.

EUR/USD News

GBP/USD turns sideways around 1.0800, focus shifts to US/UK GDP data

GBP/USD turns sideways around 1.0800, focus shifts to US/UK GDP data

GBP/USD is expected to resume its upside journey after concluding its correction to near 1.0800. To revive UK’s financial stability, the BOE announced a bond-buying program worth GBP 65 billion. Does BOE really not have the stomach to fight inflation while simultaneously keeping financial stability?

GBP/USD News

Gold sees cushion around $1,650 after a corrective move, US GDP buzz

Gold sees cushion around $1,650 after a corrective move, US GDP buzz

Gold price is experiencing a healthy correction in the Tokyo session after witnessing a bumper rally. The precious metal is expected to find significant bids around the immediate cushion of $1,650.00 as the downside bias is not backed by momentum. 

Gold News

XRP: A checklist for the next rally

XRP: A checklist for the next rally

XRP price has shown incredible buying pressure after a dip into the $0.381 to $0.433 demand zone. A recovery above $0.464 could ignite the next run-up, but ideally, a retest of $0.397 could be a good place to be a bull.

Read more

A week after Japanese yen intervention

A week after Japanese yen intervention

Last Thursday was an incredibly volatile trading session for the USD/JPY. This volatility was largely caused by the Bank of Japan's (BoJ) intervention in the currency markets to defend its depreciating currency, the Japanese Yen. Last week’s move was the first time since 1998 that the BoJ had intervened.

Read more

Forex MAJORS

Cryptocurrencies

Signatures