USD/CAD sits near session tops, just below mid-1.3700s post-US CPI

USD/CAD rallies over 50 pips from the daily swing lows amid weaker oil prices.
The uptick seemed unaffected by some renewed selling bias around the USD.
Slightly higher-than-expected US CPI failed to provide any meaningful impetus.

Haresh Menghani FXStreet

The USD/CAD pair reversed a mid-European session dip to the 1.3685-80 region and moved back to the top end of its daily trading range post-US inflation figures.

Some renewed weakness in crude oil prices undermined demand for the commodity-linked currency – the loonie – and turned out to be one of the key factors behind the pair's goodish intraday bounce of over 50 pips.

On the other hand, the US dollar witnessed some renewed selling amid fading optimism over the US President Donald Trump's proposed economic stimulus package and failed to provide any additional boost to the pair.

Moreover, concerns over the economic impact of the coronavirus outbreak continued denting demand for riskier assets and led to a fresh leg down in the US Treasury bond yields, which added to the USD selling bias.

Meanwhile, the USD bulls seemed rather unimpressed by the latest US consumer inflation figures, which showed that the headline CPI edged lower to 2.3% YoY rate as compared to 2.2% expected and 2.5% previous.

Hence, it will be prudent to wait for some strong follow-through buying before positioning for any further near-term appreciating move as the focus now shifts to the US annual budget for the fiscal year 2021.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3736
Today Daily Change	0.0008
Today Daily Change %	0.06
Today daily open	1.3728

Trends
Daily SMA20	1.3352
Daily SMA50	1.322
Daily SMA100	1.3204
Daily SMA200	1.3212

Levels
Previous Daily High	1.3796
Previous Daily Low	1.3609
Previous Weekly High	1.344
Previous Weekly Low	1.3315
Previous Monthly High	1.3465
Previous Monthly Low	1.3202
Daily Fibonacci 38.2%	1.3725
Daily Fibonacci 61.8%	1.3681
Daily Pivot Point S1	1.3626
Daily Pivot Point S2	1.3524
Daily Pivot Point S3	1.3439
Daily Pivot Point R1	1.3813
Daily Pivot Point R2	1.3898
Daily Pivot Point R3	1.4

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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