• The USD/CAD slides for the second day in a row clings to 1.2450.
  • Western Texas Intermediate (WTI) crude oil rises again above $80.00, lifts the CAD.
  • USD/CAD: Moving averages and the Relative Strenght Index (RSI) suggest that the pair is a downtrend.

The USD/CAD begins the Asian session on the wrong foot slides 0.01%, is trading at 1.2441 during the day at the time of writing.

The market sentiment is a mixed bag, as witnessed by Asian equity futures, seesawing around gainers and losers. On Wednesday, a higher US inflation reading spurred a rally in the US bond market, which triggered a fall in US T-bond yields, ultimately underpinned the greenback, with the US Dollar Index falling 0.50%, finished at 94.00.

Higher crude oil prices boost the Canadian dollar. Western Texas Intermediate (WTI) advances 0.05%, is trading at $80.0, weighs on the USD/CAD pair.

On Wednesday, the US Bureau of Labor Statistics (BLS) released inflation numbers. The Consumer Price Index for September rose by 5.4%, more than 5.3% estimated by analysts. Furthermore, the Core Consumer Price Index, which excludes food and energy costs, increased by 4%, according to estimations.

USD/CAD Price Forecast: Technical outlook

Daily chart

The USD/CAD pair is trading just below the daily moving averages, suggesting that the pair is in a downtrend. Momentum indicators like the Relative Strenght Index (RSI) at 34 indicate the pair has a downward bias.

For sellers to resume the downward trend, they will need a daily close below 1.2421. In that outcome, the first support would be 1.2302. A breach of the latter could tumble the USD/CAD towards 1.2006, but it will find some hurdles on the way south, like the May 27 high at 1.2140

On the flip side, a daily close above the confluence of the 200-DMA and the psychological around the 1.2500-05 area could open the door for further gains for buyers. In that outcome, the following resistance would be the 50-DMA at 1.2619.

KEY ADDITIONAL LEVELS TO WATCH

USD/CAD

Overview
Today last price 1.2444
Today Daily Change -0.0025
Today Daily Change % -0.01
Today daily open 1.2469
 
Trends
Daily SMA20 1.2647
Daily SMA50 1.2627
Daily SMA100 1.2491
Daily SMA200 1.2512
 
Levels
Previous Daily High 1.2498
Previous Daily Low 1.2434
Previous Weekly High 1.2655
Previous Weekly Low 1.2452
Previous Monthly High 1.2896
Previous Monthly Low 1.2494
Daily Fibonacci 38.2% 1.2459
Daily Fibonacci 61.8% 1.2474
Daily Pivot Point S1 1.2436
Daily Pivot Point S2 1.2403
Daily Pivot Point S3 1.2372
Daily Pivot Point R1 1.25
Daily Pivot Point R2 1.2531
Daily Pivot Point R3 1.2564

 

 

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: Bears stepping in below 1.1600, focus on ECB, US GDP

EUR/USD remains under pressure below 1.1600, as the US dollar extends the late Wednesday bids amid broad risk-aversion. Traders turn cautious amid stagflation fears and ahead of Thursday's ECB policy decision and the US Q3 GDP release. 

EUR/USD News

GBP/USD: Sellers attack 50-DMA on monthly support break

GBP/USD prints a three-day downtrend following the key support break, pressured around 1.3740 during the early Asian session on Thursday. The cable pair broke an ascending support line, now resistance, from September 30 the previous day but refrained from closing below 50-DMA.

GBP/USD News

Gold remains pressured near $1,800 amid USD recovery

Gold prices surrender the previous session's gains and struggle to defend the $1,800 mark. The US 10-year Treasury yields rebound from the early lower levels to trade at 1.55%, following the upcoming BOJ and the ECB policy meetings on the day.

Gold News

Shiba Inu could surpass Dogecoin after a 700% SHIB price rally in October

Shiba Inu (SHIB) continued its march upward on Oct. 27, with its price hitting a record high of nearly $0.000060 before correcting lower. SHIB rallied by more than 25% to an all-time high of $0.00005959, crossing above its previous all-time high of 0.00005000, according to data from Binance.

Read more

BOJ Preview: Focus on outlook tweaks ahead of general election Premium

Despite the recent depreciation in the yen and rising energy prices, the Bank of Japan (BOJ) is likely to maintain its monetary policy settings on Thursday, as it concludes its two-day monetary policy review meeting.

Read more

Forex MAJORS

Cryptocurrencies

Signatures