USDCAD @ 1.28660 – Trading Levels analysis: drops to fresh daily low, approaches mid-1.2800s amid weaker USD
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- USD/CAD witnesses fresh selling on Monday amid modest USD weakness.
- Retreating US bond yields, the risk-on impulse weighs on the safe-haven USD.
- Bearish oil prices could undermine the loonie and help limit any further losses.
The pair currently trades last at 1.28660.
The previous day high was 1.2985 while the previous day low was 1.2861. The daily 38.2% Fib levels comes at 1.2938, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2908, expected to provide resistance.
The USD/CAD pair attracts fresh selling on the first day of a new week and retreats further from a nearly three-week high, around the 1.2985 area touched on Friday. The intraday downtick extends through the mid-European session and drags spot prices to a fresh daily low, around the 1.2870 region in the last hour.
The US dollar struggles to capitalize on the post-NFP strong move up and edges lower on Monday, which turns out to be a key factor exerting downward pressure on the USD/CAD pair. Retreating US Treasury bond yields, along with a generally positive tone around the equity markets, temper the greenback’s relative safe-haven status. The downside, however, seems cushioned, warranting some caution before placing aggressive bearish bets.
The upbeat US monthly jobs report released on Friday lifted bets for a larger, 75 Fed rate hike move at the September policy meeting. This should act as a tailwind for the US bond yields and help revive the USD demand. Crude oil prices, meanwhile, languished near a multi-month low, which should undermine the commodity-linked loonie and further contribute to limiting any meaningful downside for the USD/CAD pair, at least for the time being.
In the absence of any major market-moving economic releases, the US bond yields and the broader market risk sentiment would play a key role in driving the USD demand. Apart from this, traders will take cues from oil price dynamics to grab short-term opportunities around the USD/CAD pair. The focus, however, would remain on the release of the US consumer inflation figures on Wednesday, which might provide a fresh directional impetus to spot prices.
Technical Levels: Supports and Resistances
USDCAD currently trading at 1.287 at the time of writing. Pair opened at 1.2937 and is trading with a change of -0.52 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2870 |
| 1 | Today Daily Change | -0.0067 |
| 2 | Today Daily Change % | -0.5200 |
| 3 | Today daily open | 1.2937 |
The pair is trading below its 20 Daily moving average @ 1.2909, above its 50 Daily moving average @ 1.2864 , above its 100 Daily moving average @ 1.2785 and above its 200 Daily moving average @ 1.2736
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2909 |
| 1 | Daily SMA50 | 1.2864 |
| 2 | Daily SMA100 | 1.2785 |
| 3 | Daily SMA200 | 1.2736 |
The previous day high was 1.2985 while the previous day low was 1.2861. The daily 38.2% Fib levels comes at 1.2938, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2908, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.287, 1.2803, 1.2746
- Pivot resistance is noted at 1.2994, 1.3052, 1.3119
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2985 |
| Previous Daily Low | 1.2861 |
| Previous Weekly High | 1.2985 |
| Previous Weekly Low | 1.2768 |
| Previous Monthly High | 1.3224 |
| Previous Monthly Low | 1.2789 |
| Daily Fibonacci 38.2% | 1.2938 |
| Daily Fibonacci 61.8% | 1.2908 |
| Daily Pivot Point S1 | 1.2870 |
| Daily Pivot Point S2 | 1.2803 |
| Daily Pivot Point S3 | 1.2746 |
| Daily Pivot Point R1 | 1.2994 |
| Daily Pivot Point R2 | 1.3052 |
| Daily Pivot Point R3 | 1.3119 |
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