#USDCAD @ 1.35806 edges higher on Thursday, though the uptick lacks any follow-through buying. (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 edges higher on Thursday, though the uptick lacks any follow-through buying.
• The less hawkish BoC decision, softer oil prices undermine the loonie and offer support.
• The USD languishes near the monthly low and acts as a headwind ahead of the US GDP.

The pair currently trades last at 1.35806.

The previous day high was 1.3652 while the previous day low was 1.3508. The daily 38.2% Fib levels comes at 1.3563, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3597, expected to provide resistance.

The USD/CAD pair attracts some buying on Thursday and sticks to its modest intraday gains through the early European session. The pair is currently placed just above the mid-1.3500s, though the uptick lacks bullish conviction.

The US dollar languishes near its lowest level since September 20 touched the previous day and acts as a headwind for the USD/CAD pair. Signs of a slowdown in the US economy cooled market expectations for a more aggressive policy tightening by the Federal Reserve. This has been a key
factor behind the recent sharp pullback in the US Treasury bond yields, which continues to weigh on the greenback.

Moreover, a positive tone around the equity markets further contributes to capping the upside for the safe-haven buck. That said, the Bank of Canada’s less hawkish move on Wednesday, to raise rates by 50 bps as against 75 bps anticipated, limits the downside for the USD/CAD pair. Furthermore, a modest downtick in crude oil prices undermines the commodity-linked loonie and offers support to the major.

The mixed fundamental backdrop warrants some caution for aggressive traders and positioning for a firm intraday direction. Market participants now look forward to the release of the Advance US Q3 GDP report, due later during the early North American session. Thursday’s US economic docket also features Durable Goods Orders and the usual Weekly Initial Jobless Claims, which might influence the USD.

Traders will also take cues from the broader market risk sentiment and oil price dynamics to grab short-term opportunities around the USD/CAD pair. The focus, however, remains glued to next week’s FOMC policy meeting. This, along with the closely-watched US monthly jobs report (NFP), will play a key role in determining the next leg of a directional move for the greenback and the major.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3558 at the time of writing. Pair opened at 1.3552 and is trading with a change of 0.04 % .

The pair is trading below its 20 Daily moving average @ 1.3714, above its 50 Daily moving average @ 1.3405 , above its 100 Daily moving average @ 1.3154 and above its 200 Daily moving average @ 1.2927

The previous day high was 1.3652 while the previous day low was 1.3508. The daily 38.2% Fib levels comes at 1.3563, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3597, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3489, 1.3426, 1.3345
• Pivot resistance is noted at 1.3633, 1.3714, 1.3777

[/s2If]
Join Our Telegram Group