• Bulls once again showed some resilience below the 1.3300 round figure mark.
• A sharp fall in oil prices undermined Loonie and helped regain positive traction.
• Upbeat Canadian/softer US data did little to hinder the ongoing momentum.
The USD/CAD pair reversed an early dip back closer to near two-week lows and spiked to fresh session tops, around mid-1.3300s in the last hour.
For the third straight session, the pair showed some resilience at lower levels and once again managed to find decent support near the 1.3290-85 region and seemed rather unaffected by the prevalent US Dollar selling bias. A sudden turnaround in crude oil prices, which tend to underpin demand for the commodity-linked currency - Loonie, turned out to be one of the key factors behind the pair's goodish intraday bounce of over 50-pips.
After climbing to fresh yearly highs, WTI crude oil witnessed a sharp intraday pull-back and has now drifted into the negative territory ahead of the publication of the usual weekly report on the US drilling activity by Baker Hughes. Concerns over US-China trade disputes resurfaced on news that the Trump-Xi meeting has been pushed back to April and prompted traders to take some profits off the table, especially after four consecutive days of strong gains.
On the economic data front, Canadian manufacturing sales rose 1% in January as against 0.4% expected, though did little to provide any meaningful boost to the Canadian Dollar. From the US, the Empire State Manufacturing Index drops to 3.7 in March as compared consensus estimates pointing to a reading of 10, but again failed to hinder the ongoing positive momentum.
Technical levels to watch
USD/CAD
Overview:
Today Last Price: 1.3336
Today Daily change %: 0.01%
Today Daily Open: 1.3334
Trends:
Daily SMA20: 1.3278
Daily SMA50: 1.3264
Daily SMA100: 1.33
Daily SMA200: 1.3185
Levels:
Previous Daily High: 1.3349
Previous Daily Low: 1.3287
Previous Weekly High: 1.3469
Previous Weekly Low: 1.3275
Previous Monthly High: 1.3341
Previous Monthly Low: 1.3069
Daily Fibonacci 38.2%: 1.3325
Daily Fibonacci 61.8%: 1.331
Daily Pivot Point S1: 1.3298
Daily Pivot Point S2: 1.3261
Daily Pivot Point S3: 1.3236
Daily Pivot Point R1: 1.336
Daily Pivot Point R2: 1.3385
Daily Pivot Point R3: 1.3422
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
Editors’ Picks
AUD/USD: Extra gains in the pipeline above 0.6520
AUD/USD partially reversed Tuesday’s strong pullback and regained the 0.6500 barrier and beyond in response to the sharp post-FOMC pullback in the Greenback on Wednesday.
EUR/USD meets support around 1.0650
EUR/USD managed to surpass the key 1.0700 barrier in response to the intense retracement in the US Dollar in the wake of the Fed’s interest rate decision and Chair Powell’s press conference.
Gold surpasses $2,300 as Dollar tumbles
The precious metal maintains its constructive stance and trespasses the $2,300 region on Wednesday after the Federal Reserve left its FFTR intact, matching market expectations.
Bitcoin price reclaims $59K as Fed leaves rates unchanged
The market was at the edge of its seat on Wednesday to see whether the US Federal Reserve (Fed) would cut interest rates during the Federal Open Market Committee (FOMC) meeting.
The market welcomes the Fed's statement
The market has welcomed the Fed statement, and the S&P 500 is higher in its aftermath, the dollar is lower and Treasury yields are falling. There is still only one cut priced in by the Fed.