USD/CAD trims gains on Friday and consolidates below 1.3200


  • The US dollar closes a three-day rally and pulls back below 1.3200.
  • The loonie picks up amid a moderately positive market mood
  • Longer-term, the pair remains on a negative channel from September 30 highs.

The US dollar has lost ground on Friday, pulling back from Thursday’s highs at 1.3255 to consolidate below 1.3200 on Friday’s late trading. The Canadian dollar has been favoured by a slightly brighter market mood to put an end to a three-day losing streak.  

The US dollar eases as the risk sentiment improves

The greenback has given away gains on Friday, which has helped the risk-sensitive CAD to trim losses. Investors have shrugged off the disappointment regarding the poor prospects of a fiscal stimulus deal in the US and the tightening COVID-19 restrictions in Europe, which has reflected in the moderate advances on equity markets.

Macroeconomic data has offered support to the greenback. US retail consumption posted a larger than expected increase in September, easing concerns about the strength of US economy after the downbeat employment figures seen on Thursday.

USD/CAD remains trading within a downward trending channel

The daily chart shows the USD/CAD trading below a downward trending resistance line from late September highs. The par seems to have strong resistance at 1.3215, where the mentioned resistance line meets the 50-day SMA. A clear move above here might cancel the negative trend and set the pair towards 1.3335 (Oct 7 high) and 1.3420 (Sept 30 high)   

On the downside, the pair might find at 1.3145 (Sept 15 low) and 1.3100 (October 12 low) before 1.3045 (Sept 4 low).

Technical levels to watch

USD/CAD

Overview
Today last price 1.3186
Today Daily Change -0.0032
Today Daily Change % -0.24
Today daily open 1.3218
 
Trends
Daily SMA20 1.327
Daily SMA50 1.3216
Daily SMA100 1.3365
Daily SMA200 1.3539
 
Levels
Previous Daily High 1.326
Previous Daily Low 1.3142
Previous Weekly High 1.3341
Previous Weekly Low 1.311
Previous Monthly High 1.3421
Previous Monthly Low 1.2994
Daily Fibonacci 38.2% 1.3215
Daily Fibonacci 61.8% 1.3187
Daily Pivot Point S1 1.3154
Daily Pivot Point S2 1.309
Daily Pivot Point S3 1.3037
Daily Pivot Point R1 1.3271
Daily Pivot Point R2 1.3324
Daily Pivot Point R3 1.3389

 

 

 

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