The USD/CAD pair's early tepid up-move got sold into near 1.3480 level and has now dropped to fresh session low near 1.3465 region.
The pair on Thursday stalled this week's strong up-surge to 6-week highs and retreated from the key 1.35 psychological mark. A modest recovery in crude oil prices, which derives demand for the commodity-linked currency - Loonie, prompted investors to take some profits off the table. However, considering the pair's recent gains of nearly 250-pips over the past few days, the retracement could be categorized as consolidative phase.
• No fundamental evidence in the oil market to justify this week’s selloff – Goldman Sachs
Meanwhile, markets seem to have digested the US Treasury Secretary Mnuchin's overnight comments on bring a major tax reform, that helped the US Dollar to bounce of three-week lows and lifted the pair to its highest level since March 10.
• US Dollar looks for direction near 99.70
Focus now shifts to Canadian inflation figures, which would help investors grab some meaningful movement later during early NA session. From the US, the flash PMI numbers alongside existing home sales data might also influence the pair on Friday.
Technical levels to watch
A follow through retracement below mid-1.3400s is likely to drag the pair back below the 1.3400 handle, towards its next support near 1.3380 level. On the upside, sustained momentum above 1.3480-85 zone now seems to lift the pair beyond the key 1.3500 hurdle towards yearly highs resistance near 1.3535 area en-route 1.3560-70 strong resistance.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.