USD/CAD sticks to modest gains, bulls await a sustained move beyond 100-DMA


  • A modest pull-back in Oil prices undermine Loonie and helped regain traction.
  • The USD continues to attract some safe-haven flows and remained supportive. 
  • Traders now eye US monthly retail sales data for some short-term opportunities.

The USD/CAD pair is currently placed at the top end of its weekly trading range, with bulls still awaiting a sustained move back above 100-day SMA.

After yesterday's modest pullback and a subsequent bounce from the 1.3300 handle, the pair managed to regain some positive traction on the last trading day of the week and was supported by a combination of factors. 

Crude Oil prices failed to capitalize on the previous session's sharp gains - led by worries over disruptions to oil supply and acted as a key factor undermining demand for the commodity-linked currency - Loonie.

Attacks on two oil tankers in the Gulf of Oman stoked fears of reduced crude flows through one of the world's key shipping routes, though weaker global demand forecasts kept a lid on any strong follow-through rise.

The latest negative outlook came from International Energy Agency (IEA), which revised down its 2019 demand growth estimate by 100,000 bpd to 1.2 million bpd and exerted some fresh pressure on Crude Oil prices.

Meanwhile, the incoming softer US economic data - including last Friday's May monthly jobs report, coupled with slowing inflation further reinforced expectations that the Fed will cut interest rates by the end of this year. 

However, the fact that the move is largely priced in, investors seemed reluctant to carry aggressive US Dollar bearish bets heading into next week’s FOMC policy meeting, which further collaborated to the pair's modest uptick.

Despite the supporting forces, bulls lacked any strong conviction and now look forward to the US monthly retail sales figures for the required momentum to finally make it through 100-day SMA immediate strong resistance.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3335
Today Daily Change 0.0007
Today Daily Change % 0.05
Today daily open 1.3328
 
Trends
Daily SMA20 1.3411
Daily SMA50 1.3412
Daily SMA100 1.3348
Daily SMA200 1.328
Levels
Previous Daily High 1.3345
Previous Daily Low 1.33
Previous Weekly High 1.3529
Previous Weekly Low 1.3262
Previous Monthly High 1.3566
Previous Monthly Low 1.3357
Daily Fibonacci 38.2% 1.3318
Daily Fibonacci 61.8% 1.3328
Daily Pivot Point S1 1.3303
Daily Pivot Point S2 1.3279
Daily Pivot Point S3 1.3258
Daily Pivot Point R1 1.3349
Daily Pivot Point R2 1.337
Daily Pivot Point R3 1.3394

 

 

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