• A combination of supporting factors assisted USD/CAD to regain positive traction on Friday.
  • Aggressive Fed rate hike bets amidst a cautious mood pushed the USD to a fresh 20-year peak.
  • Recession fears capped oil prices, which undermined loonie and further extended support.
  • Traders now look forward to the release of the monthly jobs report from the US and Canada.

The USD/CAD pair attracted fresh buying in the vicinity of mid-1.2900s on Friday and continued scaling higher through the first half of the European session. The pair has now reversed a major part of the overnight losses and was last seen trading just above the 1.3000 psychological mark.

Following the previous day's brief pause, the US dollar was back in demand and shot to a fresh two-decade high amid the prospects for faster rate hikes by the Fed. The market bets were reaffirmed by hawkish minutes of the June 14-15 FOMC meeting released on Wednesday, indicating that another 50 or 75 bps rate hike is likely at the July meeting. Apart from this, the prevalent cautious market mood also benefitted the safe-haven greenback, which, in turn, assisted the USD/CAD pair to regain positive traction on the last day of the week.

The market sentiment remains fragile amid concerns that rapidly rising interest rates and tightening financial conditions would pose challenges to global growth. Apart from this, the ongoing Russia-Ukraine war and the latest COVID-19 outbreak in China have been fueling recession fears. Meanwhile, the worsening economic outlook has raised concerns about the fuel demand recovery. This, in turn, acted as a headwind for crude oil prices, which undermined the commodity-linked loonie and provided an additional lift to the USD/CAD pair.

It would now be interesting to see if bulls are able to maintain their dominant position or refrain from placing fresh bets ahead of Friday's release of monthly jobs data from the US and Canada. The popularly known NFP report might infuse some volatility in the financial markets and drive the USD demand. Apart from this, traders will further take cues from oil price dynamics to grab short-term opportunities around the USD/CAD pair.

Technical levels to watch

USD/CAD

Overview
Today last price 1.301
Today Daily Change 0.0044
Today Daily Change % 0.34
Today daily open 1.2966
 
Trends
Daily SMA20 1.2928
Daily SMA50 1.2844
Daily SMA100 1.2749
Daily SMA200 1.2687
 
Levels
Previous Daily High 1.3057
Previous Daily Low 1.2963
Previous Weekly High 1.2966
Previous Weekly Low 1.2819
Previous Monthly High 1.3079
Previous Monthly Low 1.2518
Daily Fibonacci 38.2% 1.2999
Daily Fibonacci 61.8% 1.3021
Daily Pivot Point S1 1.2934
Daily Pivot Point S2 1.2901
Daily Pivot Point S3 1.284
Daily Pivot Point R1 1.3028
Daily Pivot Point R2 1.3089
Daily Pivot Point R3 1.3122

 

 

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 0.9800 after US inflation data

EUR/USD stays below 0.9800 after US inflation data

EUR/USD continues to trade in negative territory below 0.9800 in the American session on Friday. The data from the US showed that the annual PCE inflation declined to 6.2% in August but the stronger-than-expected core reading didn't allow the pair to gain traction.

EUR/USD News

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD fell to a fresh daily low below 1.1030 but managed to reverse its direction and climbed above 1.1100 during the American trading hours on Friday. The pair remains on track to snap a two-week losing streak despite having suffered heavy losses earlier in the week.

GBP/USD News

Gold extends daily rally beyond $1,670

Gold extends daily rally beyond $1,670

Gold preserved its bullish momentum and rose above $1,670 after the mixed inflation data from the US on Friday. The benchmark 10-year yield is down more than 2% as markets look to wrap up the third quarter, fueling XAU/USD's daily rally. 

Gold News

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity games for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for Shiba Inu price. 

Read more

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

Equity markets remain at the precipice of a technical collapse, which we examine in the weekly long-term chart below. The overall picture remains one of nervousness ahead of the upcoming Q3 earnings season.

Read more

Forex MAJORS

Cryptocurrencies

Signatures