USD/CAD struggles to move back above 1.3300 mark, US CPI in focus


  • The ongoing slump in Oil prices undermine Loonie and lend some support.
  • The USD remains on the defensive amid firming Fed rate cut expectations.
  • Traders now eye Wednesday’s US consumer inflation data for a fresh impetus.

The USD/CAD pair held on to its mildly positive tone through the early European session on Wednesday, albeit remained capped below the previous session's swing high.

After a rather subdued action through the major part of Tuesday's trading session, the pair witnessed a surprise move to the upside and was being supported by weaker Crude Oil prices. A weaker demand outlook, coupled with an unexpected rise in the US inventories weighed on Oil and undermined demand for the commodity-linked currency - Loonie.

The positive move, however, lacked any strong bullish conviction and failed to sustain above the 1.3300 handle in the wake of the US President Donald Trump's efforts to talk down the domestic currency. Trump said that other currencies are undervalued against the US Dollar and also complained that the Fed was keeping interest rates way too high.

The comments further reaffirmed market expectations for an eventual Fed rate cut action by the end of this year and kept the USD bulls on the defensive, failing to assist the pair to build on the positive momentum despite a follow-through slump in Oil prices on Wednesday. Hence, it would be prudent to wait for a strong follow-through buying before confirming that the pair might have actually bottomed out in the near-term or positioning for any further appreciating move.

Later during the early North-American session, the US economic docket - highlighting the release of the latest consumer inflation figures, will now be looked upon to grab some meaningful trading opportunities. In the meantime, the USD/Oil price dynamics might continue to act as key determinants of the pair's momentum on Wednesday.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3286
Today Daily Change 0.0002
Today Daily Change % 0.02
Today daily open 1.3284
 
Trends
Daily SMA20 1.3422
Daily SMA50 1.3413
Daily SMA100 1.3348
Daily SMA200 1.3278
Levels
Previous Daily High 1.3309
Previous Daily Low 1.325
Previous Weekly High 1.3529
Previous Weekly Low 1.3262
Previous Monthly High 1.3566
Previous Monthly Low 1.3357
Daily Fibonacci 38.2% 1.3287
Daily Fibonacci 61.8% 1.3273
Daily Pivot Point S1 1.3253
Daily Pivot Point S2 1.3222
Daily Pivot Point S3 1.3195
Daily Pivot Point R1 1.3312
Daily Pivot Point R2 1.334
Daily Pivot Point R3 1.3371

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD consolidates losses as Fed moderates message

EUR/USD is trading above 1.1350, consolidating its losses. The Fed's Bullard and Chair Powell have conveyed a balanced message and chancing for a sharp rate cut of 50bp in July have dropped.

EUR/USD News

GBP/USD offers fewer moves ahead of Carney’s speech

Having reversed from the 50-day SMA, mainly because of renewed Brexit fears and sluggish data from the UK’s CB retail sales survey, the GBP/USD pair trades modestly flat near 1.2685 ahead of the London open.

GBP/USD News

USD/JPY: Bulls back in charge, re-takes 107.50

The less dovish rhetoric from a selection of Fed speakers overnight continues to aid the post-FOMC US dollar recovery, prompting the USD/JPY pair to retest the midpoint of the 107 handle despite negative Asian equities. 

USD/JPY News

Gold: 100-HMA triggers the U-turn towards $1421?

Gold is on a run towards near-term horizontal-resistance following its U-turn from the 100-hour moving average (HMA) ticks it up to $1407.80 ahead of the European open on Wednesday.

Gold News

Conference Board Consumer Confidence: The China syndrome

The index declined to 121.5 in June from April’s revised 131.3. A much more modest drop to 131.2 had been predicted.  “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence,” wrote Lynn Franco.

Read more

Majors

Cryptocurrencies

Signatures