#USDCAD @ 1.34043 struggles to gain any meaningful traction amid the prevalent USD selling bias. (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 struggles to gain any meaningful traction amid the prevalent USD selling bias.
• A modest downtick in oil prices undermines the Loonie and helps limit the downside.
• Traders now look to the US PCE inflation data and ISM PMI short-term opportunities.

The pair currently trades last at 1.34043.

The previous day high was 1.3594 while the previous day low was 1.3426. The daily 38.2% Fib levels comes at 1.349, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.353, expected to provide resistance.

The USD/CAD pair consolidates the previous day’s heavy losses and oscillates in a narrow range, around the 1.3400 mark through the early European session on Thursday.

The US Dollar languishes near a multi-month low in the wake of dovish comments by Federal Reserve Chairman Jerome Powell on Wednesday and acts as a headwind for the USD/CAD pair. In fact, Powell sent a clear message that the US central bank will soften its stance and said that it was time to moderate the pace of interest rate hikes. This leads to an extension of the recent sharp decline in the US Treasury bond yields and keeps the USD bulls on the defensive.

Apart from this, the risk-on mood – as depicted by a positive tone around the equity markets – is seen as another factor weighing on the safe-haven Greenback. That said, a modest retracement in Crude Oil prices from a one-week high touched on Wednesday undermines the commodity-linked Loonie and lends support to the USD/CAD pair. The likelihood that OPEC+ will leave output unchanged at its meeting on Sunday and demand concerns act as a headwind for the black liquid.

Nevertheless, the underlying bearish sentiment surrounding the USD suggests that the path of least resistance for the USD/CAD pair is to the downside. This, in turn, supports prospects for an extension of this week’s sharp pullback from the vicinity of mid-1.3600s, or the highest level since November 4 set on Tuesday. Hence, any attempted recovery could be seen as a selling opportunity and runs the risk of fizzling out rather quickly.

Market participants now look forward to the US economic docket, highlighting the release of the Fed’s preferred inflation gauge – the Core PCE Price Index – and ISM Manufacturing PMI. This, along with the US bond yields and the broader risk sentiment, will influence the USD. Traders will further take cues from oil price dynamics to grab short-term opportunities around the USD/CAD pair.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3399 at the time of writing. Pair opened at 1.3451 and is trading with a change of -0.39 % .

The pair is trading below its 20 Daily moving average @ 1.3416, below its 50 Daily moving average @ 1.3578 , above its 100 Daily moving average @ 1.3286 and above its 200 Daily moving average @ 1.3022

The previous day high was 1.3594 while the previous day low was 1.3426. The daily 38.2% Fib levels comes at 1.349, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.353, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3387, 1.3322, 1.3218
• Pivot resistance is noted at 1.3555, 1.3659, 1.3723

[/s2If]
Join Our Telegram Group