USD/CAD slides 1-month lows, around 1.3180 region

BoC’s optimistic view of the domestic economy continues to underpin the CAD.
A modest pullback in oil prices seemed largely offset by a subdued USD demand.
The market attention now shifts to OPEC+ meeting and second-tier economic data.

Haresh Menghani FXStreet

The USD/CAD pair added to the previous session's post-BoC losses and dropped to near one-month lows, around the 1.3180-75 region in the last hour.

The pair extended this week's rejection slide from a resistance marked by a six-month-old descending trend-line and witnessed some follow-through selling for the third consecutive session on Thursday.

The Canadian dollar remained well supported by Wednesday's BoC policy statement, which reflected the central bank's optimistic view on the domestic economy and dampened prospects for immediate easing.

This coupled with a goodish intraday rally in crude oil prices, supported by a larger than expected drop in the US inventories, provided an additional boost to the commodity-linked currency – loonie.

The pair tumbled over 100 pips and continued losing some ground through the early European session on Thursday, rather unaffected by a modest pullback in oil prices ahead of the key OPEC+ meeting.

The prevalent US dollar selling bias – weighed down by a duo of disappointing US macro releases on Wednesday – was seen as one of the key factors prompting some follow-through selling on Thursday.

Even the latest trade optimism, led by a Bloomberg report that the US and China are moving closer to a deal before the 15 December tariffs deadline, also did little to provide any meaningful boost to the greenback.

Moving ahead, market participants now look forward to the economic docket, featuring some second-tier releases from Canada and the US, for some short-term trading impetus later during the early North-American session.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3187
Today Daily Change	-0.0008
Today Daily Change %	-0.06
Today daily open	1.3195

Trends
Daily SMA20	1.3259
Daily SMA50	1.3219
Daily SMA100	1.3226
Daily SMA200	1.328

Levels
Previous Daily High	1.33
Previous Daily Low	1.3192
Previous Weekly High	1.332
Previous Weekly Low	1.3234
Previous Monthly High	1.3328
Previous Monthly Low	1.3114
Daily Fibonacci 38.2%	1.3233
Daily Fibonacci 61.8%	1.3259
Daily Pivot Point S1	1.3158
Daily Pivot Point S2	1.3121
Daily Pivot Point S3	1.3049
Daily Pivot Point R1	1.3266
Daily Pivot Point R2	1.3338
Daily Pivot Point R3	1.3375

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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