USD/CAD struggles around weekly top near 1.3500 as softer Oil price jostles with USD retreat

USD/CAD clings to mild losses near one-week high after rising the most on a day since early March.
Downbeat Oil price, firmer US Dollar previously favored Loonie pair buyers amid risk-off mood.
Market’s consolidation fails to inspire USD/CAD bears as WTI crude oil remains downbeat.
US inflation clues, debt ceiling updates and banking news eyed for clear directions.

Anil Panchal FXStreet

USD/CAD bulls take a breather around 1.3490 amid early Friday, after posting the biggest daily jump in nine weeks the previous day. In doing so, the Loonie pair fails to cheer the US Dollar’s retreat as the Oil price remains bearish. Also keeping the buyers hopeful is the cautious mood ahead of the US inflation clues, as well as challenges to sentiment emanating from the US debt ceiling talks and banking fallouts.

WTI crude oil price remains pressured at the weekly low, near $70.60 by the press time, down for the third consecutive day as economic fears join the firmer US Dollar to weigh on the commodity prices. That said, recently downbeat inflation data from China, the world’s biggest commodity user, join the looming fears of US default and banking fallouts to exert downside pressure on the black gold prices.

On the other hand, the US Dollar Index (DXY) retreats from a one-week high to 102.00 after posting the biggest daily gains in two months the previous day despite mostly downbeat prints of the US Producer Price Index (PPI) and Initial Jobless Claims. It should be noted that the hawkish comments from Minneapolis Fed President Neel Kashkari joined the postponement of the debt ceiling talks between US President Joe Biden and House Speaker McCarthy and a slump in the share price of PacWest Bancorp to favor the US Dollar bulls.

Elsewhere, expectations of recovery in China inflation data and hopes of witnessing softer US inflation clues join an absence of fresh disappointment from the US banking, debt-ceiling front to underpin the market’s latest corrective bounce.

While portraying the mood, the US stock futures print mild gains while the Asia-Pacific equities grind higher amid downbeat US Treasury bond yields.

Looking ahead, a light calendar in Canada allows the USD/CAD traders to concentrate on preliminary readings of the University of Michigan’s (UoM) Consumer Sentiment Index (CSI) for May, as well as the UoM 5-year Consumer Inflation Expectations for the said month, for possible moves.

Technical analysis

Despite the previous day’s run-up, USD/CAD stays on the bear’s radar unless providing a daily closing beyond the 100-DMA hurdle of around 1.3520.

Additional important levels

Overview
Today last price	1.3487
Today Daily Change	-0.0005
Today Daily Change %	-0.04%
Today daily open	1.3492

Trends
Daily SMA20	1.3495
Daily SMA50	1.357
Daily SMA100	1.3515
Daily SMA200	1.3457

Levels
Previous Daily High	1.3496
Previous Daily Low	1.3363
Previous Weekly High	1.3639
Previous Weekly Low	1.3371
Previous Monthly High	1.3668
Previous Monthly Low	1.3301
Daily Fibonacci 38.2%	1.3445
Daily Fibonacci 61.8%	1.3414
Daily Pivot Point S1	1.3405
Daily Pivot Point S2	1.3318
Daily Pivot Point S3	1.3273
Daily Pivot Point R1	1.3537
Daily Pivot Point R2	1.3583
Daily Pivot Point R3	1.367

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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