USD/CAD sellers attack 1.2300 as upbeat markets battle WTI pullback

  • USD/CAD struggles to extend recovery from weekly bottom.
  • Fedspeak, Biden’s infrastructure spending headlines favor risk appetite.
  • WTI consolidates recent gains amid mixed clues during quiet session.
  • US Durable Goods Orders, Fed’s signals and US stimulus talks will be the key.

USD/CAD refreshes intraday low to 1.2300 amid a lackluster Asian session on Thursday morning. The Loonie pair remained unchanged the previous day as bulls and bears jostle amid mixed concerns.

Among them, the downbeat print of Canadian Retail Sales for April, -5.7% MoM versus -5.0% forecast, joins the mixed US Markit PMIs to test the USD/CAD bears. On the contrary, firmer oil prices, Canada’s key export item, as well as the upbeat market sentiment tame the recovery moves.

Recently, chatters surrounding US President Joe Biden’s infrastructure spending package and fears of covid variants tease the pair sellers even as WTI steps back from multi-month high above $73.00. Additionally, the passage of Canadian Prime Minister Justin Trudeau's budget bill, one step closer to become the law, also confuses the USD/CAD trader amid a quiet session.

It’s worth noting that the Fed policymakers, including Chairman Jerome Powell, gained support from US Treasury Secretary Janet Yellen to defend easy money policies. Also notable is the US Senators’ rush to finalize the details of the $1.2 trillion stimulus ahead of two-week-long holidays.

Against this backdrop, stock futures are mildly bid but the US Treasury yields struggle for clear direction by the press time.

Moving on, a light calendar in Canada highlights US Durable Goods Orders for May as the key catalyst of the day. However, major attention will be given to oil prices and Fedspeak, not to forget stimulus and covid headlines, for fresh impulse.

Read: US Durable Goods Orders May Preview: Is the consumer really absent?

Technical analysis

Wednesday’s Doji candlestick above 50-day EMA keeps USD/CAD buyers hopeful unless the quote drops below 1.2250. The recovery moves, however, will be questioned by 100-day EMA near 1.2400.

Additional important levels

Today last price 1.2302
Today Daily Change -4 pips
Today Daily Change % -0.03%
Today daily open 1.2306
Daily SMA20 1.2173
Daily SMA50 1.2224
Daily SMA100 1.2414
Daily SMA200 1.27
Previous Daily High 1.2329
Previous Daily Low 1.2252
Previous Weekly High 1.2481
Previous Weekly Low 1.2128
Previous Monthly High 1.2352
Previous Monthly Low 1.2013
Daily Fibonacci 38.2% 1.2282
Daily Fibonacci 61.8% 1.23
Daily Pivot Point S1 1.2262
Daily Pivot Point S2 1.2219
Daily Pivot Point S3 1.2186
Daily Pivot Point R1 1.2339
Daily Pivot Point R2 1.2372
Daily Pivot Point R3 1.2415



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