#USDCAD @ 1.33316 has sensed demand after dropping to near 1.3330 amid negative market sentiment. (Pivot Orderbook analysis)

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• USD/CAD has sensed demand after dropping to near 1.3330 amid negative market sentiment.
• Goldman Sachs sees two more interest rate hikes of 25 bps by the Fed in March and May.
• Oil price is likely to continue their downside as central banks have restricted their monetary policy further.

The pair currently trades last at 1.33316.

The previous day high was 1.3348 while the previous day low was 1.3262. The daily 38.2% Fib levels comes at 1.3315, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3295, expected to provide support.

The USD/CAD pair has witnessed buying interest after a corrective move to near 1.3330 in the Tokyo session. The Loonie asset displayed a corrective move as the US Dollar Index (DXY) showed signs of exhaustion in the upside momentum after reaching to near 101.55.

The risk profile is extremely sour as risk-perceived assets like S&P500 futures have witnessed sheer selling pressure in the Asian session. The three-day winning streak in the S&P500 futures is expected to terminate as investors are worried that solid United States employment costs could dent the declining trend in the Consumer Price Index (CPI). This might result in a continuation of policy tightening by the Federal Reserve (Fed).

For the interest rate guidance, the Goldman Sachs Research team said in its client note that it expects the Fed to hike interest rates by 25 basis points (bps) consecutively in March and May. This way the central bank will reach the terminal rate of 5.00-5.25%. The client note claims that the Gross Domestic Growth (GDP) growth will slow to 1.4% in 2023, reflecting a negative impact from tighter financial conditions.

USD/CAD will see a power-pack action after the release of the United States Nonfarm Payrolls (NFP) data. Analysts at TD Securities expect a 220K increase in payroll and a modest increase in the Unemployment Rate to 3.6%.

On the oil front, the oil price is struggling to hold itself above the critical support of $76.00. The further downside in the oil price looks favored as western central banks have tightened their monetary policy to tame soaring inflation. It is worth noting that Canada is a leading exporter of oil to the United States and lower oil price will impact the Canadian Dollar.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.333 at the time of writing. Pair opened at 1.3313 and is trading with a change of 0.13 % .

The pair is trading below its 20 Daily moving average @ 1.3383, below its 50 Daily moving average @ 1.3498 , below its 100 Daily moving average @ 1.3532 and above its 200 Daily moving average @ 1.3219

The previous day high was 1.3348 while the previous day low was 1.3262. The daily 38.2% Fib levels comes at 1.3315, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3295, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3268, 1.3222, 1.3183
• Pivot resistance is noted at 1.3353, 1.3393, 1.3438

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