• 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.



Today last price 1.2444
Today Daily Change -0.0025
Today Daily Change % -0.01
Today daily open 1.2469
Daily SMA20 1.2647
Daily SMA50 1.2627
Daily SMA100 1.2491
Daily SMA200 1.2512
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



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