USD/CAD struggles for a firm direction, stuck in a range around 1.3200 mark

USD/CAD seesawed between tepid gains/minor losses through the early North American session.
A recovery in the global risk sentiment undermined the safe-haven USD and capped the upside.
Weaker crude oil prices undermined the loonie and helped limit any deeper losses for the major.

Haresh Menghani FXStreet

The USD/CAD pair lacked any firm directional bias and seesawed between tepid gains/minor losses, around the 1.3200 mark through the early North American session.

A combination of diverging forces failed to assist the pair to build on the previous day's goodish gains, instead led to a subdued/range-bound price action on the last day of the week. A slight improvement in the global risk sentiment – as depicted by a positive tone around the equity markets – weighed on the US dollar's safe-haven status.

However, growing market worries that a steep rise in new coronavirus cases could lead to renewed lockdown measures and hinder the global economic recovery helped limit any deeper USD slide. Adding to this, Friday's upbeat US monthly Retail Sales figures further provided some respite to the USD bulls and extended support to the USD/CAD pair.

Meanwhile, a fresh leg down in crude oil prices undermined the commodity-linked currency – the loonie. The Canadian dollar was further pressured by the disappointing Manufacturing Sales data for August, which, in turn, further contributed towards limiting the downside for the USD/CAD pair, at least for the time being.

Other economic data released this Friday showed that Industrial Production in the US unexpectedly fell 0.6% MoM in September as compared to the previous month's 0.4% increase. The data, however, did little to provide any meaningful impetus and largely passed unnoticed as the focus remains on development surrounding the US fiscal stimulus measures.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3214
Today Daily Change	-0.0004
Today Daily Change %	-0.03
Today daily open	1.3218

Trends
Daily SMA20	1.327
Daily SMA50	1.3216
Daily SMA100	1.3365
Daily SMA200	1.3539

Levels
Previous Daily High	1.326
Previous Daily Low	1.3142
Previous Weekly High	1.3341
Previous Weekly Low	1.311
Previous Monthly High	1.3421
Previous Monthly Low	1.2994
Daily Fibonacci 38.2%	1.3215
Daily Fibonacci 61.8%	1.3187
Daily Pivot Point S1	1.3154
Daily Pivot Point S2	1.309
Daily Pivot Point S3	1.3037
Daily Pivot Point R1	1.3271
Daily Pivot Point R2	1.3324
Daily Pivot Point R3	1.3389

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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