USD/CAD to approach 1.3750-1.3800 resistance, risk-aversion returns

FXStreet Team FXStreet

Risk consideration will continue to provide the analytical framework for the USD/CAD, which opened at 1.3608 last week to finish on Friday at 1.3687. The loonie is trading at 1.3658 today and is set to remain strong the week ahead, according to FXStreet’s analyst Joseph Trevisani, who notes how the pair is approaching the 1.3750 and 1.3800 resistances.

Key quotes

“It seems unlikely that markets will return to the full-bore panic of March but the dollar advantage will remain until it is clear that the new higher caseload will not prompt another round of economic closures.

“States and localities in the US appear far better able to handle the hospitalization rates this time around but background nervousness will continue to infect markets and support the USD/CAD.”

“There is a sharp divergence in the moving averages. The 21-day is still beholden to the decline from the pandemic panic ranges above 1.3900 and at 1.3555 it was crossed on Wednesday during the week's largest climb. The 100-day at 1.3796 reinforces the 1.3800 resistance line and the 200-day at 1.3487 is a distance backstop for support at 1.3525.”

Author

FXStreet Team

FXStreet

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.