USD/CAD struggles near 1-month lows, around 1.3200 handle ahead of US CPI

Haresh Menghani FXStreet

• The USD bulls remain on the defensive amid dovish Fed expectations and exert pressure.
• The ongoing bullish run in oil prices underpin Loonie and add to the recent selling bias.
• Today’s key release of the US consumer inflation figures eyed for some fresh impetus.

The USD/CAD pair held on to its weaker tone through the mid-European trading session, albeit once again managed to find some support ahead of 100-day SMA.

After yesterday's attempted rebound, the pair came under some renewed selling pressure on Friday and drifted back closer to over one-month lows amid some renewed US Dollar selling bias.

The Fed Chair Jerome Powell's comments on Thursday, reiterating the idea of being patient on the next rate hike move, added to dovish FOMC minutes and kept the USD bulls on the defensive.

This coupled with the ongoing bullish run in crude oil prices provided an additional boost to the dollar-denominated currency - Loonie and further collaborated to the pair's weaker tone on the last trading day of the week.

It would now be interesting to see if the pair continues defending the 100-DMA support or extends its recent sharp retracement slide from over 19-month tops, setting the stage for the lowest weekly close since mid-November.

Moving ahead, today's US economic docket, highlighting the release of consumer inflation figures, will now be looked upon for some fresh/meaningful trading impetus during the early North-American session.

Technical levels to watch

On a sustained break through the mentioned support, currently near the 1.3170 region, the pair is likely to accelerate the fall further towards 1.3130 intermediate support en-route the 1.3100 round figure mark.

On the flip side, any meaningful recovery attempt might now confront some fresh supply near the 1.3230-35 region, above which a bout of short-covering might assist the pair to aim towards reclaiming the 1.3300 handle.

Author

Haresh Menghani

FXStreet

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

EUR/USD: Breakdown below trading range support near 1.1770 comes into play

The EUR/USD pair opens with a bearish gap at the start of a new week as the US-Iran war-led global flight to safety boosts the US Dollar. Spot prices, however, lack follow-through selling and manage to hold above mid-1.1700s during the Asian session.

GBP/USD targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold retreats from $5,400; still up over 1% amid Middle East tensions

Gold retreats from the $5,400 neighborhood, or its highest level since late January, touched in the Asian session on Monday, though it manages to hold above the $5,300 round figure. The bright metal opened with a bullish gap of about $17 and rallied toward the $5,400 level as Asian traders hit their desks and reacted negatively to the weekend news of the US and Israel attacks on Iran, rushing for cover in Gold.

Top Crypto Losers: Tezos, Toncoin, and Polkadot at crucial levels amid US-Israel strike on Iran

Altcoins such as Tezos, Toncoin, and Polkadot rank among the worst hit cryptocurrencies over the last 24 hours amid the US and Israel's attack on Iran. Tezos and Toncoin are down to crucial support levels while Polkadot remains near a crucial resistance trendline, showcasing underlying strength.

The market is paying for insurance, not apocalypse

As expected, this morning felt less like a Monday market open and more like a fire drill. Futures screens flickered red. S&P contracts down almost 1%. Nasdaq off 1.2%. Brent leaped 13% through $80. Gold rose 1.6% toward $5350 before paring some gains. The dollar is strutting mildly. The Swiss franc is quietly doing what it always does in a storm, catching some safe-haven flows.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.