USD/CAD struggles near weekly lows, around 1.3035 region

USD/CAD remains depressed for the second consecutive session on Thursday.
Oil prices rise on US-China trade deal optimism and underpinned the loonie.
The USD struggles to find buyers and weighed further ahead of US retail sales.

Haresh Menghani FXStreet

The USD/CAD pair edged lower for the second consecutive session on Thursday and is currently placed near the lower end of its weekly trading range, around the 1.3035 region.

Oil prices rose on the back of the latest optimism over the long-awaited US-China phase one trade deal, which eventually underpinned demand for the commodity-linked currency – loonie and turned out to be one of the key factors exerting some pressure.

However, the fact that the outcome was nearly priced in the market, the announcement did little to impress the US dollar bulls. Meanwhile, a modest pickup in the US Treasury bond yields extended some support to the USD and helped limit the downside.

Hence, it will be prudent to wait for some strong follow-through selling, possibly below the key 1.30 psychological mark, before positioning for any further near-term appreciating move ahead of Thursday's release of the US monthly retail sales data.

Thursday's economic docket also features the release of Canadian ADP report and Philly Fed Manufacturing Index from the US. This coupled with a scheduled speech by the Fed Governor Michelle Bowman might further produce some short-term trading opportunities.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3037
Today Daily Change	-0.0010
Today Daily Change %	-0.08
Today daily open	1.3047

Trends
Daily SMA20	1.3063
Daily SMA50	1.3166
Daily SMA100	1.3191
Daily SMA200	1.3243

Levels
Previous Daily High	1.308
Previous Daily Low	1.3034
Previous Weekly High	1.3106
Previous Weekly Low	1.2956
Previous Monthly High	1.3322
Previous Monthly Low	1.2951
Daily Fibonacci 38.2%	1.3052
Daily Fibonacci 61.8%	1.3062
Daily Pivot Point S1	1.3028
Daily Pivot Point S2	1.3009
Daily Pivot Point S3	1.2983
Daily Pivot Point R1	1.3073
Daily Pivot Point R2	1.3099
Daily Pivot Point R3	1.3118

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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