• USD/CAD prolonged its recent bearish trend and dropped to a fresh two-week low on Friday.
  • The tight supply outlook acted as a tailwind for crude oil prices, which underpinned the loonie.
  • Subdued USD price action did little to impress bullish traders or lend any support to the pair.

The USD/CAD pair added to the previous day's losses and witnessed some follow-through selling for the second successive day on Friday. This also marked the fifth day of a negative move in the previous six and dragged spot prices to a fresh two-week low, around the 1.2780-1.2775 region during the first half of the European session.

Despite concerns that weakening global economic growth could curb a recovery in fuel demand, a tight supply outlook acted as a tailwind for crude oil prices. Apart from this, strong domestic consumer inflation figures released on Wednesday underpinned the commodity-linked loonie and exerted some downward pressure on the USD/CAD pair.

On the other hand, the US dollar languished near its lowest level since May 5 and was pressured by the recent sharp pullback in the US Treasury bond yields. Apart from this, the risk-on impulse in the markets was seen as another factor that weighed on the safe-haven greenback and contributed to offered toe surrounding the USD/CAD pair.

with the latest leg down, spot prices now seem to have found acceptance below the 1.2800 round-figure mark. This could be seen as a fresh trigger for bearish traders and supports prospects for additional losses. That said, expectations for a more aggressive policy tightening by the Fed might act as a tailwind for the buck and the USD/CAD pair.

There isn't any major market-moving economic data due for release on Friday, either from the US or Canada. Hence, the USD remains at the mercy of the US bond yields and the broader market risk sentiment. Apart from this, traders will take cues from oil price dynamics to grab short-term opportunities around the USD/CAD pair.

Technical levels to watch

USD/CAD

Overview
Today last price 1.2785
Today Daily Change -0.0041
Today Daily Change % -0.32
Today daily open 1.2826
 
Trends
Daily SMA20 1.2866
Daily SMA50 1.2697
Daily SMA100 1.2692
Daily SMA200 1.2659
 
Levels
Previous Daily High 1.2894
Previous Daily Low 1.2783
Previous Weekly High 1.3077
Previous Weekly Low 1.2893
Previous Monthly High 1.288
Previous Monthly Low 1.2403
Daily Fibonacci 38.2% 1.2825
Daily Fibonacci 61.8% 1.2851
Daily Pivot Point S1 1.2775
Daily Pivot Point S2 1.2723
Daily Pivot Point S3 1.2664
Daily Pivot Point R1 1.2886
Daily Pivot Point R2 1.2945
Daily Pivot Point R3 1.2997

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD continues to decline toward 1.0250 during the American trading hours on Friday. After the data published by the UOM showed that the long-run inflation outlook rose to 3% in August from 2.9% in July, the dollar gathered strength against its rivals, weighing on the pair.

EUR/USD News

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD is trading deep in negative territory near 1.2100 during the American session on Friday. With the UoM's Consumer Sentiment Survey pointing to a modest increase in the long-run inflation outlook, the US Dollar Index extended its rally, reflecting a broad dollar strength.

GBP/USD News

Gold clings to modest gains above $1,790

Gold clings to modest gains above $1,790

Gold stays relatively resilient on Friday and trades modestly higher on the day above $1,790. Although the greenback continues to outperform its rivals on the latest US data, falling US Treasury bond yields help XAU/USD hold in positive territory.

Gold News

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shytoshi Kusama, the project leader of Shiba Inu announced the launch of Shiba Eternity for Vietnamese players. The game is available for testing and the team has asked users for their review. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures