• USD/CAD grinds higher around intraday top during the first positive day in three.
  • News of Ukraine’s violation of ceasefire propelled USD, oil prices.
  • Canada inflation came in stronger, US data was firmer too but FOMC minutes posed cautious optimism.
  • No major data on calendar, Fedspeak, risk catalysts are the key for fresh impulse.

USD/CAD stays firmer around 1.2720, following a quick run-up to 1.2734, as market sentiment sour on geopolitical news from Russia during early Thursday morning in Europe.

It should, however, be noted that the recently upbeat prices of WTI crude oil, Canada’s main export item, seem to challenge the USD/CAD bulls of late.

That said, the market sentiment soured on Sputnik’s news saying, “Ukraine fired mortar shells and grenades on Luhansk People's Republic (LPR) locations.” Following that, Reuters quoted other sources to mention, “Russian-backed rebels in eastern Ukraine accused Kyiv government forces on Thursday of using mortars to attack their territory, in violation of agreements aimed at ending the conflict, the RIA news agency said.”

The risk-off mood can well be witnessed in the quick recovery of the US Dollar Index (DXY) and WTI crude oil prices, up 0.12% and 1.7% daily in that order. Also portraying the risk-aversion wave is the downbeat performance of US Treasury yields and stock futures.

Previously, doubts over Russia’s rolling back of some troops from the border and the US-China Phase 1 deal headlines were challenging the market sentiment. However, the oil prices were bearing the burden of positive news concerning the US-Iran deal on denuclearization.

That said, the Canadian Consumer Price Index (CPI) rose at an annual pace of 5.1% in January, above median economist forecasts for a pace of 4.8% and above December's 4.8% YoY rate of price growth, according to data released by Statistics Canada on Wednesday. On the other hand, US Retail Sales and Industrial Production rose notably beyond the market forecasts and previous readouts with the latest MoM figures of 3.8% and 1.4% respectively in January.

To sum up, USD/CAD traders will pay more attention to the risk catalysts than the second-tier US data and Fedspeak for fresh impulse.

Technical analysis

MACD conditions aren’t supporting rebound, which in turn challenge the USD/CAD buyers until the quote crosses a six-week-long resistance line, near 1.2780 by the press time.

On the contrary, a downside break of the stated immediate support line, near 1.2670, will highlight convergence of the 100-DMA and 50% Fibonacci retracement (Fibo.) of October-December 2021 upside, close to 1.2625, as the key level for bears to break.s

Additional important levels

Today last price 1.2723
Today Daily Change 0.0039
Today Daily Change % 0.31%
Today daily open 1.2684
Daily SMA20 1.2686
Daily SMA50 1.2708
Daily SMA100 1.2624
Daily SMA200 1.2536
Previous Daily High 1.2734
Previous Daily Low 1.2664
Previous Weekly High 1.2756
Previous Weekly Low 1.2636
Previous Monthly High 1.2814
Previous Monthly Low 1.2451
Daily Fibonacci 38.2% 1.2691
Daily Fibonacci 61.8% 1.2707
Daily Pivot Point S1 1.2654
Daily Pivot Point S2 1.2623
Daily Pivot Point S3 1.2583
Daily Pivot Point R1 1.2724
Daily Pivot Point R2 1.2765
Daily Pivot Point R3 1.2795



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

AUD/USD dribbles around key support below 0.6900, China PMI, US PCE inflation eyed

AUD/USD dribbles around key support below 0.6900, China PMI, US PCE inflation eyed

AUD/USD holds onto the previous day’s bounce off important support while taking rounds to 0.6870 during Thursday’s inactive early Asian session. In addition to defending the corrective pullback, the Aussie pair also portrays the market’s anxiety ahead of important data from a major customer China.


EUR/USD: Oversold RSI probes bears around 1.0450

EUR/USD: Oversold RSI probes bears around 1.0450

EUR/USD dribbles around a two-week low as oversold RSI conditions challenge further downside during Thursday’s inactive Asian session. That said, the major currency pair takes rounds to 1.0450-40 at the latest.


Gold stays on the way to $1,807 support ahead of US PCE inflation

Gold stays on the way to $1,807 support ahead of US PCE inflation

Gold Price struggles to defend the previous day’s bounce off short-term key support during Thursday’s Asian session. In doing so, the yellow metal remains indecisive around $1,818. The yellow metal dropped to the lowest levels in two weeks the previous day.

Gold News

Polygon's MATIC price signals hard times to come, here's why

Polygon's MATIC price signals hard times to come, here's why
Polygon’s MATIC price signals bears have re-entered the market. If the profit-taking continues, a cataclysmic fall could occur to breach the $0.31 low
Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!