USD/CAD struggles to find directiom amid USD and oil weakness, trades above 1.3400


  • USD/CAD fails to build on Thursday's recovery gains. 
  • US Dollar Index struggles to rebound above 93.00.
  • WTI trades deep in the negative territory near $40.

Despite the unabated selling pressure surrounding the USD on Thursday, the USD/CAD pair gained 80 pips to close at 1.3424 as the plunging crude oil prices hurt the commodity-related loonie. On Friday, the pair trades in a relatively tight range above 1.3400 and struggles to make a decisive move in either direction.

The data from the US showed on Thursday that the economic activity shrunk by 32.9% on a yearly basis in the second quarter. With this reading reviving concerns over a dismal energy demand outlook, the barrel of West Texas Intermediate (WTI) lost nearly 3%. Ahead of Baker Hughes' weekly US Oil Rig Count data, the WTI is down 0.7% on the day at $40.05, keeping USD/CAD's downside limited.

Eyes on US and Canada data

On the other hand, falling US Treasury bond yields continue to weigh on the greenback. The US Dollar Index (DXY) dropped to its lowest level since May 2018 at 92.55 on Friday but staged a rebound. Nevertheless, the DXY failed to climb above 93.00 and was last seen losing 0.15% at 92.82. Meanwhile, the 10-year US T-bond yield is down 2.8%. 

In the second half of the day, Personal Spending, Personal Income and Personal Consumption Expenditures (PCE) Price Index data will be featured in the US economic docket.

More importantly, Statistics Canada will publish its monthly Gross Domestic Product (GDP) data for May, which is expected to show a growth of 3.5%.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3417
Today Daily Change -0.0006
Today Daily Change % -0.04
Today daily open 1.3423
 
Trends
Daily SMA20 1.35
Daily SMA50 1.3567
Daily SMA100 1.3826
Daily SMA200 1.3523
 
Levels
Previous Daily High 1.346
Previous Daily Low 1.3334
Previous Weekly High 1.36
Previous Weekly Low 1.3352
Previous Monthly High 1.3802
Previous Monthly Low 1.3316
Daily Fibonacci 38.2% 1.3412
Daily Fibonacci 61.8% 1.3382
Daily Pivot Point S1 1.3351
Daily Pivot Point S2 1.3279
Daily Pivot Point S3 1.3225
Daily Pivot Point R1 1.3477
Daily Pivot Point R2 1.3531
Daily Pivot Point R3 1.3603

 

 

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