#USDCAD @ 1.33343 USDCAD is seen oscillating in a narrow trading band on the last day of the week. (Pivot Orderbook analysis)

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• USDCAD is seen oscillating in a narrow trading band on the last day of the week.
• Bearish Crude Oil prices undermine the Loonie and offer support to the major.
• Softer US bond yields keep the USD bulls on the defensive and cap the upside.

The pair currently trades last at 1.33343.

The previous day high was 1.3401 while the previous day low was 1.3305. The daily 38.2% Fib levels comes at 1.3342, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3364, expected to provide resistance.

The USDCAD pair struggles to gain any meaningful traction on Friday and oscillated in a narrow trading band, above the 1.3300 mark through the early European session.

Crude Oil prices languish near the monthly low amid concerns that a new COVID-19 outbreak in China will weaken fuel demand in the world’s largest importer. This, in turn, undermines the commodity-linked Loonie and offers some support to the USDCAD pair, though subdued US DOllar demand acts as a headwind for spot prices.

A modest downtick in the US Treasury bond yields is seen as a key factor keeping the USD bulls on the defensive. That said, expectations that the Federal Reserve (Fed) will continue to hike interest rates, although at a slower pace, helps limit the downside for the buck. This, along with the cautious mood, favours the USD bulls.

The market sentiment remains fragile amid worries about economic headwinds stemming from China’s COVID woes. Apart from this, geopolitical risks temper investors’ appetite for perceived riskier assets. This is evident from a generally weaker tone around the equity markets, which could drive some haven flows towards the greenback.

Despite the supportive fundamental backdrop, the USDCAD pair, so far, has been struggling to attract any meaningful buying. Furthermore, the overnight failure near the 1.3400 round figure warrants some caution before positioning for any meaningful upside. Traders now look to the US Existing Home Sales data for a fresh impetus.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3326 at the time of writing. Pair opened at 1.3325 and is trading with a change of 0.01 % .

The pair is trading below its 20 Daily moving average @ 1.3508, below its 50 Daily moving average @ 1.354 , above its 100 Daily moving average @ 1.3246 and above its 200 Daily moving average @ 1.2991

The previous day high was 1.3401 while the previous day low was 1.3305. The daily 38.2% Fib levels comes at 1.3342, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3364, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3286, 1.3247, 1.3189
• Pivot resistance is noted at 1.3382, 1.344, 1.3479

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