#USDCAD @ 1.37695 Loonie suffers the worst monthly decline since March 2020 versus the US dollar. (Pivot Orderbook analysis)
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- Loonie suffers the worst monthly decline since March 2020 versus the US dollar.
- US dollar holds firm on Friday, despite lower US yields.
- USD/CAD remain bullish and overbought.
The pair currently trades last at 1.37695.
The previous day high was 1.3756 while the previous day low was 1.3605. The daily 38.2% Fib levels comes at 1.3698, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3663, expected to provide support.
The USD/CAD is about to end Friday trading around 1.3750/60, with a weekly gain of 175 pips, on the back of risk aversion that boosted the greenback against most currencies.
The rally of the greenback lost momentum on Friday amid an extension of the retreat in US yields and also as stocks stabilized. But ongoing concerns about global growth and geopolitical tensions weigh on market sentiment. With the Federal Reserve well decided to continue tightening, the upside of the dollar continues.
During the last three weeks, USD/CAD rose almost 800 pips. After such a move, the question about how much can it keep rising in the short-term seem normal. These are volatile times and in those circumstances anything can happen.
Even as markets calm down, moves larger than average in USD/CAD are likely next week. Market participants will continue to look particularly at the bond market, stocks and the pound. Next Friday, Canada and the US will release the official employment reports.
From a technical perspective, USD/CAD is moving with a bullish bias. The only bearish sign is the extreme overbought readings. The next strong barrier is the 1.3900 area. During the last days, the pair has been moving sideways between 1.3750 and 1.3600, holding onto most of the recent gains.
Technical Levels: Supports and Resistances
USDCAD currently trading at 1.3752 at the time of writing. Pair opened at 1.3681 and is trading with a change of 0.52 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.3752 |
| 1 | Today Daily Change | 0.0071 |
| 2 | Today Daily Change % | 0.5200 |
| 3 | Today daily open | 1.3681 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.332, 50 SMA 1.3077, 100 SMA @ 1.2966 and 200 SMA @ 1.2827.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.3320 |
| 1 | Daily SMA50 | 1.3077 |
| 2 | Daily SMA100 | 1.2966 |
| 3 | Daily SMA200 | 1.2827 |
The previous day high was 1.3756 while the previous day low was 1.3605. The daily 38.2% Fib levels comes at 1.3698, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3663, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.3606, 1.353, 1.3455
- Pivot resistance is noted at 1.3756, 1.3832, 1.3907
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.3756 |
| Previous Daily Low | 1.3605 |
| Previous Weekly High | 1.3613 |
| Previous Weekly Low | 1.3227 |
| Previous Monthly High | 1.3141 |
| Previous Monthly Low | 1.2728 |
| Daily Fibonacci 38.2% | 1.3698 |
| Daily Fibonacci 61.8% | 1.3663 |
| Daily Pivot Point S1 | 1.3606 |
| Daily Pivot Point S2 | 1.3530 |
| Daily Pivot Point S3 | 1.3455 |
| Daily Pivot Point R1 | 1.3756 |
| Daily Pivot Point R2 | 1.3832 |
| Daily Pivot Point R3 | 1.3907 |
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