The US Dollar is quickly bouncing back, leading to the USDCAD pair defending the 1.3500 support level.

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• USD/CAD continues to defend the 1.3500 support as the US Dollar recovers swiftly.

The pair currently trades last at 1.35529.

The previous day high was 1.3604 while the previous day low was 1.352. The daily 38.2% Fib levels comes at 1.3552, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3572, expected to provide resistance.

The USD/CAD pair recovered strongly after discovering buying interest near 1.3520 in the early New York session. The Loonie asset strengthens as the US Dollar rebounds swiftly despite downbeat United States Durable Goods Orders data for July.

US Census Bureau reported that Durable Goods Orders data for July contracted at a faster pace of 5.2% while investors anticipated contraction at a 4% pace, swinging from an expansion of 4.4% recorded for June. On Wednesday, S&P Global reported weaker preliminary PMIs for August. This indicates that firms are underutilizing their total capacity due to a bleak demand outlook.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said: “A near-stalling of business activity in August raises doubts over the strength of US economic growth in the third quarter. The survey shows that the service sector-led acceleration of growth in the second quarter has faded, accompanied by a further fall in factory output.”

Meanwhile, the major trigger for the US Dollar will be the Jackson Hole Symposium at which Federal Reserve (Fed) Chair Jerome Powell will guide about interest rates, inflation, and the outlook on the economy.

S&P500 opens on a positive note as investors hope that Jerome Powell will not consider further interest rate hikes as the labor market is losing resilience. The US Dollar Index resumes its upside journey and reaches near 104.00.

The Canadian Dollar comes under pressure due to declining oil prices. Weak preliminary PMIs reported by Western nations dampened the oil demand outlook. It is worth noting that Canada is the leading exporter of oil to the United States and lower oil prices impact the Canadian Dollar.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3567 at the time of writing. Pair opened at 1.3526 and is trading with a change of 0.3 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3417, 50 SMA 1.3294, 100 SMA @ 1.3388 and 200 SMA @ 1.3457.

The previous day high was 1.3604 while the previous day low was 1.352. The daily 38.2% Fib levels comes at 1.3552, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3572, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3496, 1.3466, 1.3412
• Pivot resistance is noted at 1.358, 1.3634, 1.3663

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