• USD/CAD creeps lower below the 1.3700 figure on sentiment improvement and falling UST bond yields.
  • US jobs data continues to justify further tightening by the Federal Reserve.
  • USD/CAD Price Analysis: Once it falls below 1.3600, the 100-DMA is eyed.

USD/CAD sellers moved in on Thursday after being kept at the sidelines on a risk-on impulse. Although the US Federal Reserve (Fed) raised rates as expected, market participants perceived Powell and Co.’s move as dovish. That said, the USD/CAD has fallen 0.56% or 76 pips, exchanging hands at 1.3654.

Unemployment claims in the US remain depressed as the Fed battles inflation

Wall Street remains bolstered by an upbeat mood. Investors had digested words from Janet Yellen, the US Treasury Secretary, who said that the United States (US) government is not planning to introduce blanket insurance to all depositors. However, a dovish rate hike by the Fed improved risk appetite.

Data-wise, the US economic docket featured Initial Jobless Claims for the week ending on March 18, which fell by 1,000, to 191,000 below estimates of 201,000. That reinforced the Fed’s view of a tight labor market and warranted further action by the US central bank. At the same time, the Chicago Fed National Activity Index for February plunged to -0.19 vs. the prior’s month 0.23

In the meantime, the US Dollar Index, a gauge of the buck’s value against a basket of six currencies, continues to stumble and is down 0.31% at 102.213, undermined by falling US Treasury bond yields.

Therefore, the Canadian Dollar (CAD) is being boosted by a softer US Dollar and high oil price, with Western Texas Intermediate (WTI) rising above the $70.00 a barrel threshold, for the first time since March 15. Therefore, the USD/CAD is set to continue to fall as the US Dollar continues to weaken.

USD/CAD Technical levels

USD/CAD Daily chart

After sliding below the 1.3700 figure, the USD/CAD is extending its losses past the 20-day Exponential Moving Average (EMA) at 1.3668. Additionally, the pair is trading at two-week new lows, with sellers eyeing a test of the March 3 low at 1.3550. But firstly, the USD/CAD needs to conquer the 1.3600 figure. A breach of the latter will expose the 50-day EMA at 1.3584 before testing 1.3550, ahead of dropping to the 100-day EMA at 1.3509.

USD/CAD

Overview
Today last price 1.3658
Today Daily Change -0.0074
Today Daily Change % -0.54
Today daily open 1.3732
 
Trends
Daily SMA20 1.3686
Daily SMA50 1.3515
Daily SMA100 1.3511
Daily SMA200 1.3352
 
Levels
Previous Daily High 1.3745
Previous Daily Low 1.3657
Previous Weekly High 1.3828
Previous Weekly Low 1.3652
Previous Monthly High 1.3666
Previous Monthly Low 1.3262
Daily Fibonacci 38.2% 1.3711
Daily Fibonacci 61.8% 1.369
Daily Pivot Point S1 1.3678
Daily Pivot Point S2 1.3623
Daily Pivot Point S3 1.359
Daily Pivot Point R1 1.3765
Daily Pivot Point R2 1.3799
Daily Pivot Point R3 1.3853

 

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

AUD/USD recovers further toward 0.6800 on risk-recovery

AUD/USD recovers further toward 0.6800 on risk-recovery

AUD/USD extends recovery toward 0.6800 in Asian trading on Thursday, despite mixed Australian employment data. The Aussie cheers a return of risk appetite, which weighs on the post-Fed US Dollar recovery. All eyes now remain on US economic data for fresh impetus. 

AUD/USD News
USD.JPY reverses sharply from 144.00, as US Dollar recovery fizzles

USD.JPY reverses sharply from 144.00, as US Dollar recovery fizzles

USD/JPY is attacking 143.00 in Thursday's Asian session, reversing sharply from 144.00. The pair pares back gains in tandem with the US Dollar, as the latter's post-Fed recovery falters due to a rebound in risk sentiment. The focus is next on the US data due later today and Friday's BoJ decision. 

USD/JPY News
Gold price regains positive traction amid a modest USD pullback from one-week high

Gold price regains positive traction amid a modest USD pullback from one-week high

Gold price attracts some dip-buying during the Asian session on Thursday and seems to have stalled its retracement slide from the $2,600 mark, or a fresh all-time peak touched the previous day. The US dollar trims a part of its intraday gains to a one-week high, which turns out to be a key factor lending support to the commodity.

Gold News
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.

Read more
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures