USD/CAD stays in the positive territory above 1.3400, eyes on US data

USD/CAD pair is posting modest daily gains on Friday.
US Dollar Index continues to push lower below 95.00 ahead of US data.
Crude oil rebounds modestly following Thursday's sharp drop.

Eren Sengezer FXStreet

The USD/CAD pair dropped to its lowest level since June 10th at 1.3349 on Thursday but closed the day flat above 1.3400 as falling crude oil prices and risk aversion weighed on the CAD. On Friday, the pair seems to be having a difficult time making a decisive move in either direction and was last seen posting small daily gains at 1.3421.

Escalating US-China geopolitical tensions and heightened concerns over a slow global economic recovery caused the risk rally witnessed during the first half of the week to fade away. The sour market mood also hurt crude oil prices and the barrel of West Texas Intermediate (WTI) lost nearly 2% on Thursday.

USD remains on the back foot despite flight to safety

On the other hand, slumping US Treasury bond yields made it difficult for the greenback to find demand despite its safe-haven status and limited the pair's upside. The 10-year T-bond yield closed the first four days of the week in the negative territory and lost more than 9% during that period.

Although the WTI is recovering and gaining 0.7% on Friday, the risk-sensitive loonie struggles to attract investors. Meanwhile, the US Dollar Index is losing 0.15% at 94.65, forcing the pair to remain stuck in its daily range.

Later in the day, the IHS Markit will release the flash Manufacturing and Services PMI data for the US. Additionally, New Home Sales data for June will be featured in the US economic docket as well.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3423
Today Daily Change	0.0013
Today Daily Change %	0.10
Today daily open	1.341

Trends
Daily SMA20	1.3558
Daily SMA50	1.3625
Daily SMA100	1.3842
Daily SMA200	1.3515

Levels
Previous Daily High	1.3428
Previous Daily Low	1.3352
Previous Weekly High	1.3646
Previous Weekly Low	1.3502
Previous Monthly High	1.3802
Previous Monthly Low	1.3316
Daily Fibonacci 38.2%	1.3381
Daily Fibonacci 61.8%	1.3399
Daily Pivot Point S1	1.3365
Daily Pivot Point S2	1.332
Daily Pivot Point S3	1.3289
Daily Pivot Point R1	1.3441
Daily Pivot Point R2	1.3473
Daily Pivot Point R3	1.3518

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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