USD/CAD slumps to 1.2550 area, erases weekly gains

  • USD/CAD came under strong bearish pressure in the American session.
  • WTI is trading above $70, rising nearly 6% on the day.
  • US Dollar Index edges lower as US stocks extend rebound.

After trading in a relatively tight range around 1.2700 during the first half of the day, the USD/CAD pair came under strong bearish pressure and dropped all the way to 1.2523 before going into a consolidation phase. As of writing, the pair was down nearly 1%, or 120 pips, on the day at 1.2555.

WTI reclaims $70 on Wednesday

The sharp rebound witnessed in crude oil prices provided a boost to the CAD during the American trading hours. Although the US Energy Information Administration's (EIA) weekly report showed that crude oil stocks increased by 2.1 million barrels, the barrel of West Texas Intermediate (WTI) preserved its bullish momentum supported by risk flows. At the moment, WTI is up 5.9% on a daily basis at $70.30.

On the other hand, the renewed USD weakness put additional weight on USD/CAD's shoulders. With Wall Street's main indexes opening in the positive territory, the greenback lost its strength and the US Dollar Index (DXY) turned negative on the day. Currently, the DXY is down 0.2% and remains on track to snap a four-day winning streak.

There won't be any high-tier data releases from Canada on Thursday. The US Department of Labor's weekly Initial Jobless Claims report will be featured in the US economic docket. Nevertheless, the risk perception and its impact on crude oil prices are likely to remain the primary driver of USD/CAD's movements in the near term.

Technical levels to watch for


Today last price 1.2557
Today Daily Change -0.0124
Today Daily Change % -0.98
Today daily open 1.2681
Daily SMA20 1.2459
Daily SMA50 1.2267
Daily SMA100 1.2375
Daily SMA200 1.2623
Previous Daily High 1.2787
Previous Daily Low 1.2675
Previous Weekly High 1.2621
Previous Weekly Low 1.2427
Previous Monthly High 1.2487
Previous Monthly Low 1.2007
Daily Fibonacci 38.2% 1.2718
Daily Fibonacci 61.8% 1.2744
Daily Pivot Point S1 1.2642
Daily Pivot Point S2 1.2602
Daily Pivot Point S3 1.253
Daily Pivot Point R1 1.2754
Daily Pivot Point R2 1.2826
Daily Pivot Point R3 1.2866



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Bulls knock the door ahead of Fed

EUR/USD struggles to extend two-day uptrend, sidelined of late. The major currency pair rose for the second consecutive day on Tuesday while confirming the falling wedge bullish formation on the daily chart.


GBP/USD rebounds toward 1.3900 as USD weakens

GBP/USD extends the previous two day’s gains in Wednesday’s Asian session. The pair trades in a very narrow trade band and awaits for confirmation. US dollar trades below 93.00 ahead of the FOMC meeting. The sterling gains on the sharp decline in coronavirus infections.


EUR/USD: Bulls knock the door ahead of Fed

EUR/USD struggles to extend two-day uptrend, sidelined of late. The major currency pair rose for the second consecutive day on Tuesday while confirming the falling wedge bullish formation on the daily chart.


Three reasons why Cardano could rally 60%

Cardano price triggers a large symmetrical triangle pattern with yesterday’s close above the upper trend line. ADA/BTC is nearing a critical support level with the intra-day Relative Strength Indexes (RSI) flashing a bullish momentum divergence.

Read more

Fed Interest Rate Decision Preview: The horns of a inflation dilemma

No change in rate policy or bond purchases expected. US economy appears to be slowing under labor, supply chain shortages. Treasury curve has flattened, inflation has jumped since the June 16 FOMC. Dollar has gained against most majors since mid-June.

Read more