USD/CAD slumps to 1.3270 area as oil recovery gathers momentum


  • Crude oil prices gain traction on renewed trade optimism.
  • Persistent USD weakness helps the USD/CAD pair find support.
  • Markets ignored the inflation data from the United States.

The USD/CAD pair fluctuated in a narrow band above the 1.33 mark for the majority of the day before coming under modest bearish pressure in the last hours with the rising crude oil prices allowing the commodity-related Loonie to gather strength against its rivals. After touching a session low of 1.3272, the pair erased a small portion of its losses and was last seen trading at 1.3290, down 0.3% on a daily basis.

Shortly after the United States(US)-China high-level trade negotiations kicked off in Washington on Thursday, an official from the US Chamber of Commerce said there was a possibility of a currency agreement in trade talks in exchange for a delay in tariff hikes. Moreover, Chinese Vice Premier Liu He voiced China's willingness to reach an agreement "on matters that both sides care about."

The improved risk sentiment provided a boost to crude oil prices and the barrel of West Texas Intermediate is now up 1.3% on the day at $53.50.

USD can't shake off the bearish pressure

Earlier in the day, the only significant macroeconomic data release of the day revealed that the core inflation in the US, as gauged by the core Consumer Price Index (CPI), stayed unchanged at 2.4% on a yearly basis in September and failed to trigger a market reaction.

The US Dollar Index, which tracks the Greenback's performance against a basket of six major currencies, struggled to pull away decisively from the daily low it set at 98.66 after the data and is now moving sideways near 98.80, erasing 0.3% on a daily basis.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.329
Today Daily Change -0.0042
Today Daily Change % -0.32
Today daily open 1.3332
 
Trends
Daily SMA20 1.3274
Daily SMA50 1.3266
Daily SMA100 1.3247
Daily SMA200 1.3289
 
Levels
Previous Daily High 1.334
Previous Daily Low 1.3294
Previous Weekly High 1.3349
Previous Weekly Low 1.3205
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3323
Daily Fibonacci 61.8% 1.3312
Daily Pivot Point S1 1.3304
Daily Pivot Point S2 1.3276
Daily Pivot Point S3 1.3258
Daily Pivot Point R1 1.335
Daily Pivot Point R2 1.3368
Daily Pivot Point R3 1.3396

 

 

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