USD/CAD surrenders intraday gains, on the defensive around mid-1.2500s


  • A combination of factors failed to assist USD/CAD to capitalize on its modest intraday gains.
  • Bullish oil prices underpinned the loonie and capped gains amid a subdued USD demand.
  • A sustained break below the 1.2500 mark will set the stage for additional weakness.

The USD/CAD pair reversed an early North American session spike to the 1.2570-75 area and was last seen trading near daily lows, just below mid-1.2500s.

Crude oil trimmed a part of its strong intraday gains and undermined the commodity-linked loonie. This, in turn, provided a modest lift to the USD/CAD pair and was seen as a key factor behind the latest leg of a sudden spike. That said, a subdued US dollar demand kept a lid on any meaningful gains.

Investors now seemed to have set aside worries about the economic fallout from the spread of the highly contagious Delta variant of the coronavirus. This was evident from a further recovery in the global risk sentiment, which continued acting as a headwind for the safe-haven greenback.

On the economic data front, the US Initial Weekly Jobless Claims unexpectedly jumped to 419K during the week ended July 16 from the previous week's upwardly revised reading of 368K. This was seen as another factor that weighed on the buck and capped the upside for the USD/CAD pair.

That said, it will still be prudent to wait for some strong follow-through selling before positioning for any further decline. Sustained weakness below the key 1.2500 psychological mark will suggest that the USD/CAD pair has topped out and set the stage for a further corrective fall.

Technical levels to watch

USD/CAD

Overview
Today last price 1.2557
Today Daily Change 0.0002
Today Daily Change % 0.02
Today daily open 1.2555
 
Trends
Daily SMA20 1.2472
Daily SMA50 1.2276
Daily SMA100 1.2374
Daily SMA200 1.262
 
Levels
Previous Daily High 1.273
Previous Daily Low 1.2526
Previous Weekly High 1.2621
Previous Weekly Low 1.2427
Previous Monthly High 1.2487
Previous Monthly Low 1.2007
Daily Fibonacci 38.2% 1.2604
Daily Fibonacci 61.8% 1.2652
Daily Pivot Point S1 1.2477
Daily Pivot Point S2 1.2399
Daily Pivot Point S3 1.2272
Daily Pivot Point R1 1.2682
Daily Pivot Point R2 1.2808
Daily Pivot Point R3 1.2886

 

 

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