ANALYSIS:USD/CAD hangs near multi-month lows, just above mid-1.3000s

 In Blog

USD/CAD hangs near multi-month lows, just above mid-1.3000s

  • Friday’s post-NFP solid intraday bounce fizzles out rather quickly. 
  • Positive Oil prices underpin Loonie and add to the weaker tone.

The greenback held on the defensive against its Canadian counterpart, with the USD/CAD pair hanging within the striking distance of over eight-month lows set last week.

The pair did get a goodish lift on Friday and spiked to a near one-week high level of 1.3137 following the release of employment details from the US and Canada, though bulls failed to capitalize on the positive momentum.

The US Dollar rallied across the board after the headline NFP showed that the US economy added 224K new jobs in June, smashing consensus estimates by a big margin and forcing investors to scale back Fed rate cut bets.

Meanwhile, Statistics Canada reported that the number of employed people in Canada unexpectedly declined by 2,200 in June, which weighed on the Canadian Dollar and provided an additional boost to the intraday positive move.

The positive momentum, however, quickly fizzled out at higher levels, with the US President Donald Trump’s fresh criticism over the Fed’s policy tightening exerting some fresh pressure at the start of a new trading week.

This coupled with some renewed pickup in Crude Oil prices further underpinned demand for the commodity-linked currency – Loonie and collaborated to the pair’s slightly weaker tone through the early European session.

The price-action clearly suggests that the near-term bearish pressure might still be far from over and hence, a follow-through weakness, amid absent market-moving economic releases on Monday, now looks a distinct possibility.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3068
Today Daily Change -0.0014
Today Daily Change % -0.11
Today daily open 1.3082
Trends
Daily SMA20 1.336
Daily SMA50 1.3405
Daily SMA100 1.3356
Daily SMA200 1.3288
Levels
Previous Daily High 1.3138
Previous Daily Low 1.3041
Previous Weekly High 1.3147
Previous Weekly Low 1.3038
Previous Monthly High 1.3529
Previous Monthly Low 1.306
Daily Fibonacci 38.2% 1.3101
Daily Fibonacci 61.8% 1.3078
Daily Pivot Point S1 1.3036
Daily Pivot Point S2 1.299
Daily Pivot Point S3 1.2938
Daily Pivot Point R1 1.3133
Daily Pivot Point R2 1.3184
Daily Pivot Point R3 1.323
Recent Posts

Leave a Comment

0

Start typing and press Enter to search