USDCAD steadies at six-week lows, capped below 1.3300

The Dollar dives to fresh six-week lows at 1.3255.
The CAD extends gains on higher oil prices and risk appetite.
US consumer sentiment deteriorated beyond expectations in November.

Guillermo Alcala FXStreet

The US Dollar has extended losses against its Canadian counterpart on Friday, reaching a fresh six-week low at 1.3255. The pair remains on the defensive after having depreciated nearly 2% over the last two days with upside attempts capped below 1.3300 so far.

The Canadian Dollar rises on risk appetite and higher oil prices

Oil prices appreciated nearly 3% on Friday, with the US benchmark WTI oil struggling to return above the $88.00 mark after bouncing off at $84.00 on Thursday. This has underpinned the Loonie's advance, as Canada is one of the world’s major crude producers.

On Thursday, the softer-than-expected US inflation data, with the yearly CPI easing to 7.7% in October from 8.2% in September, hammered the Greenback across the board. These figures have added to evidence that price pressures are starting to ease, which has prompted investors to anticipate a Federal Reserve shift towards slower rate hikes.

US Inflation data has boosted appetite for risk, sending US Treasury bonds and the greenback. The USD Index, which measures the value of the Dollar against a basket of currencies has plummeted 3.3% over the last two days to hit levels sub-107.00 for the first time since mid-August.

In a very thin macroeconomic calendar, with the US celebrating Veteran’s Day, the Preliminary Michigan Consumer Sentiment index has deteriorated beyond expectations, weighed by concerns about inflation and higher interest rates.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3275
Today Daily Change	-0.0050
Today Daily Change %	-0.38
Today daily open	1.3325

Trends
Daily SMA20	1.3626
Daily SMA50	1.3523
Daily SMA100	1.3225
Daily SMA200	1.2976

Levels
Previous Daily High	1.3571
Previous Daily Low	1.3325
Previous Weekly High	1.3808
Previous Weekly Low	1.3469
Previous Monthly High	1.3978
Previous Monthly Low	1.3496
Daily Fibonacci 38.2%	1.3419
Daily Fibonacci 61.8%	1.3477
Daily Pivot Point S1	1.3243
Daily Pivot Point S2	1.3161
Daily Pivot Point S3	1.2997
Daily Pivot Point R1	1.3489
Daily Pivot Point R2	1.3653
Daily Pivot Point R3	1.3735

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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