#USDCAD @ 1.36641 drops as Japanese authorities confirmed an intervention, selling US Dollars. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• USD/CAD drops as Japanese authorities confirmed an intervention, selling US Dollars.
• San Francisco Fed Mary Daly said further tightening is needed while laying the ground for lower rate hikes.
• Canada’s Retail Sales in August exceeded estimates, contrarily for September, with expectations at -0.5%.

The pair currently trades last at 1.36641.

The previous day high was 1.3807 while the previous day low was 1.3651. The daily 38.2% Fib levels comes at 1.3711, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3747, expected to provide resistance.

The USD/CAD tumbled from around daily highs of 1.3850 towards the 1.3660s area as US Treasury bond yields dropped on news that Fed officials are looking to slow the pace of interest-rate increases at December’s meeting. Additionally, speculation of Japanese authorities intervening mounted as the USD/JPY tumbled from 151.60 to its daily low of 147.16. At the time of writing, the USD/CAD is trading at 1.3662.

US equities are trading in the green as a Fed pivot lurks. An article in the WSJ commented that Fed officials are assessing the size of December’s rate hike, as a 75 bps in November is most likely. Echoing those comments, San Francisco Fed President Mary Daly said that more tightening is needed while adding that “we (Fed) don’t just keep going up at 75 bps increments” on Friday. She noted that slowing rates should be considered “at this point.”

On Thursday, Philadelphia Fed President Patrick Harker and Fed’s newest board member Lisa Cook said the Fed would need to keep hiking interest rates. He added that he is “disappointed with the lack of progress curtailing inflation” and expects rates to be above 4% in 2023.

The absence of Us economic data left traders adrift in Thursday’s releases. US economic data, namely, unemployment claims, rose less than estimates, flashing the tightness of the labor market. Additionally, the Philadelphie Fed Manufacturing Index improved in October but was below estimates, hovering below zero for 5 consecutive months.

On the Canadian side, the calendar featured Retail Sales, which increased by 0.7% in August, above 0.2% estimates, while estimates for September are down 0.5%. Also underpinning the Canadian dollar was oil prices, with WTI up 0.09% at $85.25 a barrel, on higher demand by China and OPEC and its allies cuts.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3666 at the time of writing. Pair opened at 1.3765 and is trading with a change of -0.72 % .

The pair is trading below its 20 Daily moving average @ 1.3722, above its 50 Daily moving average @ 1.3344 , above its 100 Daily moving average @ 1.3111 and above its 200 Daily moving average @ 1.2905

The previous day high was 1.3807 while the previous day low was 1.3651. The daily 38.2% Fib levels comes at 1.3711, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3747, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3675, 1.3585, 1.352
• Pivot resistance is noted at 1.3831, 1.3897, 1.3987

[/s2If]
Join Our Telegram Group