The USDCAD currency pair has experienced a decent recovery from its year-to-date low and is being backed by a mixture of influences.
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- USD/CAD stages a goodish rebound from the YTD low and is supported by a combination of factors.
The pair currently trades last at 1.31914.
The previous day high was 1.318 while the previous day low was 1.3139. The daily 38.2% Fib levels comes at 1.3154, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3164, expected to provide support.
The USD/CAD pair attracts some buying on the last day of the week and for now, seems to have snapped a two-day losing streak to its lowest level since September 2022, around the 1.3140-1.31235 area touched on Thursday. The pair maintains its bid tone through the Asian session and currently trades just below the 1.3200 mark, up over 0.25% for the day.
Crude Oil prices add to the overnight heavy losses and remain under some selling pressure for the second straight day in the wake of fears that rapidly rising borrowing costs will take its toll on global economic growth and dent fuel demand. This, in turn, is seen undermining the commodity-linked Loonie, which, along with some follow-through US Dollar (USD) buying, prompts some intraday short-covering move around the USD/CAD pair.
In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, builds on the previous day’s goodish rebound from its lowest level since May 11 and draws support from the Federal Reserve’s hawkish outlook. In fact, Fed Chair Jerome Powell, during his two-day congressional testimony, reiterated that the central bank will likely raise interest rates again this year, albeit at a “careful pace”, to combat stubbornly high inflation.
Powell added that the Fed doesn’t see rate cuts happening any time soon and is going to wait until it is confident that inflation is moving down to the 2% target. Furthermore, worries about a global economic downturn continue to weigh on investors’ sentiment, which is evident from a generally weaker tone around the equity markets. The anti-risk flow further benefits the Greenback’s relative safe-haven status and lends additional support to the USD/CAD pair.
Despite the aforementioned supportive fundamental backdrop, it will still be prudent to wait for strong follow-through buying before confirming that spot prices have formed a near-term bottom and positioning for any meaningful recovery. Market participants now look to the release of the flash US PMIs, which, along with the broader risk sentiment, will drive the USD demand. Apart from this, Oil price dynamics should provide a fresh impetus to the USD/CAD pair.
Technical Levels: Supports and Resistances
USDCAD currently trading at 1.319 at the time of writing. Pair opened at 1.3152 and is trading with a change of 0.29 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.3190 |
| 1 | Today Daily Change | 0.0038 |
| 2 | Today Daily Change % | 0.2900 |
| 3 | Today daily open | 1.3152 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.3368, 50 SMA 1.345, 100 SMA @ 1.3507 and 200 SMA @ 1.352.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.3368 |
| 1 | Daily SMA50 | 1.3450 |
| 2 | Daily SMA100 | 1.3507 |
| 3 | Daily SMA200 | 1.3520 |
The previous day high was 1.318 while the previous day low was 1.3139. The daily 38.2% Fib levels comes at 1.3154, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3164, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.3134, 1.3116, 1.3093
- Pivot resistance is noted at 1.3174, 1.3197, 1.3215
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.3180 |
| Previous Daily Low | 1.3139 |
| Previous Weekly High | 1.3384 |
| Previous Weekly Low | 1.3178 |
| Previous Monthly High | 1.3655 |
| Previous Monthly Low | 1.3315 |
| Daily Fibonacci 38.2% | 1.3154 |
| Daily Fibonacci 61.8% | 1.3164 |
| Daily Pivot Point S1 | 1.3134 |
| Daily Pivot Point S2 | 1.3116 |
| Daily Pivot Point S3 | 1.3093 |
| Daily Pivot Point R1 | 1.3174 |
| Daily Pivot Point R2 | 1.3197 |
| Daily Pivot Point R3 | 1.3215 |
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