#USDCAD @ 1.35664 picks up bids to print the first daily gains in four, bounces off weekly low. (Pivot Orderbook analysis)

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• USD/CAD picks up bids to print the first daily gains in four, bounces off weekly low.
• Sluggish markets, rebound in US Treasury yields allow US Dollar to pare recent losses.
• WTI crude oil eases from one-week high as downbeat China data, higher interest rates probe oil bulls.

The pair currently trades last at 1.35664.

The previous day high was 1.3612 while the previous day low was 1.3518. The daily 38.2% Fib levels comes at 1.3554, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3577, expected to provide resistance.

USD/CAD extends recovery from weekly low to refresh intraday high near 1.3570 during the first positive day in four amid early Thursday. In doing so, the Loonie pair takes clues from the latest rebound in the US Dollar, as well as a pullback in Canada’s main export item, WTI crude oil.

US Dollar Index (DXY) consolidates recent losses around 103.80 while bouncing off one-month-old support, as well as the six-month low, as traders turn cautious ahead of multiple central bank announcements.

On the other hand, WTI crude oil snaps a four-day uptrend as it retreats from the weekly top to $76.70 amid fears of lesser demand due to downbeat China data and higher interest rates at the major central banks. Recently, China’s Retail Sales slumped to -5.9% in November versus -3.6% expected and -0.5% prior while Industrial Production came in at 2.2% compared to 3.3% market forecasts and 5.0% previous readings. Previously, OPEC and the International Energy Agency (IEA) forecasted a rebound in oil demand and joined the softer US Dollar to favor the energy bulls.

The market’s reassessment of the Fed verdict, suggesting a 50 bps rate hike and readiness to hold the rate higher for a longer period, could be cited as a reason for the US Dollar’s latest recovery, as well as the USD/CAD pair’s upside.

Against this backdrop, S&P 500 Futures remain mildly offered but the US 10-year Treasury bond yields probe a two-day downtrend near 3.50%. Further, the US two-year bond yields also extend recovery from the monthly low while printing the first daily positive in three near 4.25%.

Moving on, the second-tier data from Canada, mainly relating to housing and employment insurance, may entertain USD/CAD pair traders. However, major attention will be given to the monetary policy announcements from the Swiss National Bank (SNB), European Central Bank (ECB) and the Bank of England (BOE).

Wednesday’s Doji candlestick above the 21-day Exponential Moving Average (EMA), at 1.3535 by the press time, keeps USD/CAD buyers hopeful of reaching the monthly high near 1.3700.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3568 at the time of writing. Pair opened at 1.3555 and is trading with a change of 0.10% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3495, 50 SMA 1.3565, 100 SMA @ 1.3352 and 200 SMA @ 1.3064.

The previous day high was 1.3612 while the previous day low was 1.3518. The daily 38.2% Fib levels comes at 1.3554, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3577, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3512, 1.3468, 1.3418
• Pivot resistance is noted at 1.3606, 1.3656, 1.3699

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