USD / CAD cuts intraday gains, defensive around 1.2550

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  • A combination of factors did not help the USD / CAD capitalize on its modest intraday gains.
  • Bullish oil prices propped up the loonie and limited gains amid dovish dollar demand.
  • A sustained break below 1.2500 will set the stage for further weakness.

The USD / CAD pair reversed an initial bullish move in the North American session to the 1.2570-75 zone and was last seen trading near daily lows, just below 1.2550.

Crude trimmed a portion of its strong intraday gains and undermined commodity-linked loonie. This, in turn, provided a modest boost to the USD / CAD pair and was seen as a key factor behind the last stage of a sudden spike. That said, a subdued demand for the US dollar kept a grip on any significant gains.

Investors appeared to have brushed aside concerns about the economic fallout from the spread of the highly contagious delta variant of the coronavirus. This was evidenced by a new recovery in global risk sentiment, which continued to act as a headwind for the safe-haven dollar.

On the economic data front, weekly US jobless claims unexpectedly jumped to 419,000 for the week ended July 16 from the prior week’s upwardly revised reading of 368,000. This was seen as another factor that weighed on the dollar and limited the rise for the USD / CAD pair.

That said, it will still be prudent to wait for a strong follow-up sell before positioning for any further declines. Sustained weakness below the key psychological level of 1.2500 will suggest that the USD / CAD pair has a top and the stage has been set for a further corrective decline.

Technical levels to observe

USD / CAD

Overview
Today last price 1.2557
Today’s Daily Change 0.0002
Today daily change% 0.02
Today they open every day 1.2555
Trends
Daily SMA20 1.2472
SMA50 daily 1.2276
SMA100 daily 1.2374
SMA200 daily 1.262
Levels
Previous Daily High 1.273
Previous Daily Low 1.2526
Previous weekly high 1.2621
Previous Weekly Low 1.2427
Previous monthly maximum 1.2487
Previous Monthly Low 1.2007
Daily Fibonacci 38.2% 1.2604
Daily Fibonacci 61.8% 1.2652
Daily Pivot Point S1 1.2477
S2 daily pivot point 1.2399
S3 Daily Pivot Point 1.2272
R1 daily pivot point 1.2682
Daily pivot point R2 1.2808
R3 daily pivot point 1.2886

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