USD/CAD tumbles to the 1.2250 area, fresh three-year low

Loonie resumes upside versus US dollar after Tuesday’s pause.
USD/CAD about to post the lowest close since September 2017.

Matías Salord FXStreet

The USD/CAD resumed the decline and dropped below 1.2265, hitting at 1.2251, the lowest intraday level since January 2018; on a daily basis, it could post the lowest close since September 2017. Despite rising versus the US dollar, the loonie is modestly lower against NZD and AUD on Wednesday.

The slide in USD/CAD took place amid a broad-based US dollar decline, amid risk appetite and lower US yields following mixed US data. The DXY stands at 91.25, flat for the day after being unable to break above 91.40. Data showed mixed reading from the service sector and an increase in private payrolls by 743K according to ADP, the strongest month since September of last year.

In Wall Street, equity prices offset a weak start and turned definitively positive. The Dow Jones gains 0.45%, and the Nasdaq climbs 0.61%. The 10-year yields dropped under 1.60%. Crude oil prices are off highs, with the WTI up 0.60% at $66.10.

The USD/CAD holds a clear bearish bias, and a close below 1.2260 would keep it under pressure. The next support area is 1.2250, followed by 1.2190. On the upside, resistance levels are located at 1.2265, 1.2285, and 1.2310.

Additional levels

USD/CAD

Overview
Today last price	1.2258
Today Daily Change	-0.0053
Today Daily Change %	-0.43
Today daily open	1.2311

Trends
Daily SMA20	1.2463
Daily SMA50	1.253
Daily SMA100	1.2634
Daily SMA200	1.2892

Levels
Previous Daily High	1.2352
Previous Daily Low	1.2276
Previous Weekly High	1.2491
Previous Weekly Low	1.2266
Previous Monthly High	1.2654
Previous Monthly Low	1.2266
Daily Fibonacci 38.2%	1.2323
Daily Fibonacci 61.8%	1.2305
Daily Pivot Point S1	1.2274
Daily Pivot Point S2	1.2237
Daily Pivot Point S3	1.2198
Daily Pivot Point R1	1.235
Daily Pivot Point R2	1.2388
Daily Pivot Point R3	1.2425

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.