USD/CAD: Sellers keep lurking around 1.3200, Fed in focus


  • USD/CAD markets fifth consecutive daily moves below 1.3200.
  • WTI gains, risk reset favor the pair sellers off-late.
  • Canadian CPI, US Retail Sales can entertain traders ahead of the FOMC.

USD/CAD pulls back from an intraday low of 1.31368 to 1.3173 amid the pre-European trading on Wednesday. Even so, the loonie pair losses 0.10% daily while marking another day below the 1.3200 threshold.

Although the US dollar’s weakness during the pre-Fed trading lull becomes the key driver, recent strength in oil prices, Canada’s biggest export item, joins mildly positive risk-tone sentiment to weigh the quote downwards. Also on the negative side could be the comparative downbeat conditions of Washington versus Ottawa as far as the coronavirus (COVID-19) is concerned.

Having earlier heard the trade rhetoric from Canada, the county extended its border restrictions with America by one moth to late-October. However, the calls of the Trump administrations’ refrain from levying extra aluminum tariffs on Canada favors the Loonie.

Furthermore, news that Texas marked a three-week high of daily cases confronts US President Donald Trump’s optimism over the virus vaccine.

Elsewhere, WTI oil prices rise more than 1.0% in Asia as hurricane Sally affects energy output from the Gulf of Mexico. The barrel of black gold earlier benefited from a surprise draw in weekly inventory reports from the American Petroleum Institute (API).

While the Federal Open Market Committee (FOMC) decision will be crucial for the day, August month’s Inflation data for Canada and the US Retail Sales may offer an intermediate trading direction. Forecasts suggest that the Canadian Consumer Price Index (CPI) may recovery from 0.1% prior to 0.4%. Additionally, the BOC CPI Core is also expected to rise from 0.7% to 0.9% during the reported month. On the other hand, the US Retail Sale might ease from 1.2% MoM to 1.0%.

Technical analysis

Other than 1.3200 immediate resistance, the monthly peak surrounding 1.3260 and 50-day EMA level near 1.3285 can also challenge near-term USD/CAD advances. On the flip side, the monthly support line near 1.3125 becomes important to watch.

Additional important levels

Overview
Today last price 1.3182
Today Daily Change -4 pips
Today Daily Change % -0.03%
Today daily open 1.3186
 
Trends
Daily SMA20 1.3145
Daily SMA50 1.3301
Daily SMA100 1.3523
Daily SMA200 1.352
 
Levels
Previous Daily High 1.3202
Previous Daily Low 1.3135
Previous Weekly High 1.326
Previous Weekly Low 1.3053
Previous Monthly High 1.3451
Previous Monthly Low 1.302
Daily Fibonacci 38.2% 1.3177
Daily Fibonacci 61.8% 1.3161
Daily Pivot Point S1 1.3147
Daily Pivot Point S2 1.3107
Daily Pivot Point S3 1.3079
Daily Pivot Point R1 1.3214
Daily Pivot Point R2 1.3242
Daily Pivot Point R3 1.3282

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD trades at fresh September lows

Risk-aversion is the main theme this Monday, amid resurgent coronavirus cases in the Old Continent and the announcement of  new lockdowns. ECB’s Lagarde said the economic recovery in the EU is “very uncertain, uneven and incomplete.”

EUR/USD News

GBP/USD extends slump sub-1.2800

The Pound plunged on a dismal market mood, as PM Johnson acknowledged the kingdom is undergoing a second coronavirus wave. GBP/USD trades at one-week lows around 1.2800.

GBP/USD News

XAU/USD dives to sub-$1900 levels, six-week lows

Gold extended last week's rejection slide from a short-term descending trend-line resistance and tumbled to six-week lows during the early North American session.

Gold News

Bitcoin needs to defend critical support level at $10,600

Bitcoin was trading inside an ascending triangle pattern between September 3 and September 15, which is created when the price establishes higher lows and a horizontal trendline around the swing highs. 

Read more

WTI plummets to $39, down more than 4%

Crude oil prices closed the previous week sharply higher but erased a large portion of those gains on Monday. As of writing, the barrel of West Texas Intermediate was down 4.2%, the biggest daily percentage decline in nearly two weeks, at $39.15.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures