USD/CAD struggles below 1.3100 handle, fresh multi-month lows

The USD remains on the defensive ahead of the crucial Trump-Xi meeting at G20 summit.
A modest pullback in Crude Oil undermines Loonie and might help limit the downside.
Traders now eye Canadian GDP report/US economic data some short-term impetus.

Haresh Menghani FXStreet

The greenback remained on the defensive against its Canadian counterpart, with the USD/CAD pair slipping further below the 1.3100 handle to hit near five-month lows on Friday.

The pair extended its recent bearish trajectory from levels beyond the 1.3400 round figure mark and remained under some selling pressure for the fifth consecutive session on Friday, also marking its eighth day of a downtick in the previous nine.

Despite Thursday's mostly in line final US Q1 GDP report, the US Dollar failed to attract any buying interest and failed to lend any support to the major as investors remained on the sidelines ahead of the US President Donald Trump's trade-related meeting with Chinese President Xi Jinping.

Even a modest pullback in Crude Oil prices, which tend to undermine demand for the commodity-linked currency - Loonie, failed to provide any meaningful impetus, albeit seemed to be the only factor that might help limit further losses, at least for the time being.

Moving ahead, Friday economic docket - highlighting the monthly Canadian GDP report, along with the releases of Core PCE price index, personal income and spending data for May, Chicago PMI and revised UoM Consumer Sentiment index from the US will now be looked upon for some fresh impetus.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3087
Today Daily Change	-0.0009
Today Daily Change %	-0.07
Today daily open	1.3096

Trends
Daily SMA20	1.3304
Daily SMA50	1.3392
Daily SMA100	1.3354
Daily SMA200	1.3291

Levels
Previous Daily High	1.314
Previous Daily Low	1.3092
Previous Weekly High	1.3434
Previous Weekly Low	1.3151
Previous Monthly High	1.3566
Previous Monthly Low	1.3357
Daily Fibonacci 38.2%	1.311
Daily Fibonacci 61.8%	1.3121
Daily Pivot Point S1	1.3079
Daily Pivot Point S2	1.3061
Daily Pivot Point S3	1.3031
Daily Pivot Point R1	1.3127
Daily Pivot Point R2	1.3157
Daily Pivot Point R3	1.3175

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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