The USD/CAD pair extended Wednesday's rejection move from 50-day SMA hurdle and slipped below 1.3100 handle.
Currently trading around 1.3090-95 region, the pair snapped four consecutive days of winning streak and has now erased all of its gains recorded in the previous two sessions amid broad based greenback sell-off. Against the backdrop of disappointment from Wednesday's FOMC meeting minutes, comments from the US Treasury Secretary Steve Mnuchin intensified US Dollar selling pressure during early NA session.
In addition to this, higher-than-expected rise in the US initial weekly jobless claims further collaborated to the bearish sentiment surrounding the greenback and accelerated the pair's reversal move from multi-day tops beyond 1.3200 handle touched yesterday.
Meanwhile, strong positive momentum in oil markets, with WTI crude oil posting gains in excess of 2.% and inching closer to $55.00/barrel mark, boosted demand for the commodity-linked currency - Loonie, and aggravated the selling pressure around the major.
Focus now shifts to the official EIA report on the US crude stockpiles and speech from the Dallas Fed President Robert Kaplan, which should provide some fresh trading impetus for the major during NY session.
Technical levels to watch
Bears would be eyeing for a break below 1.3080 level below which the pair is likely to drift towards 1.3025 horizontal support ahead of 1.30 psychological mark support.
On the upside, any recovery attempts above 1.3125 horizontal level now seems to confront resistance at the very important 200-day SMA near 1.3145-50 region above which the pair is likely to make a fresh attempt to reclaim 1.3200 handle.
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
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.