USD/CAD pulls back from two-month highs, finds no acceptance above 1.3200

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  • USD/CAD gains some positive traction and hits a two-month high on Thursday.
  • A further rise in oil prices weakens the loonie and offers support to the pair.
  • The weak demand for dollars does not impress the bulls or provide a significant boost.

The pair USD/CAD hits a 2-month high during the early American session and looks to build on momentum beyond 1.3200.

A further drop in oil prices undermines the commodity-linked loonie and turns out to be a key factor pushing USD/CAD higher. Concerns that a deeper global economic slowdown will hit fuel demand overshadow concerns about tight supply and weigh on the black liquid.

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On the other hand, the US dollar is struggling to gain traction and is little moved in reaction to mixed US macroeconomic data, although it remains well supported by Fed expectations. This is seen as another factor acting as a tailwind. tail for the USD/CAD pair and favors bullish traders.

That said, repeated failures to build on momentum beyond 1.3200 constitute multiple top formations on short-term charts. This makes it prudent to wait for a strong follow-through on buying new bullish bets around the USD/CAD pair and position yourself for further gains.

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However, the fundamental backdrop suggests that the path of least resistance is to the upside. Traders, however, might prefer to stay on the sidelines ahead of next week’s FOMC meeting, which will influence USD price action and provide a further directional boost to the USD/CAD pair.

Technical levels

USD/CAD

Panorama
Last Price Today 1.3191
Today’s Daily Change 0.0025
Today’s Daily Change % 0.19
Today’s Daily Opening 1.3166
Trends
20 Daily SMA 1.3063
50 Daily SMA 1.2962
100 Daily SMA 1.2901
200 Daily SMA 1.2791
levels
Previous Daily High 1.3206
Previous Daily Minimum 1.3139
Previous Maximum Weekly 1.3209
Previous Weekly Minimum 1.2982
Monthly Prior Maximum 1.3141
Previous Monthly Minimum 1.2728
Daily Fibonacci 38.2% 1.3181
Daily Fibonacci 61.8% 1.3165
Daily Pivot Point S1 1.3134
Daily Pivot Point S2 1.3103
Daily Pivot Point S3 1.3067
Daily Pivot Point R1 1.3201
Daily Pivot Point R2 1.3237
Daily Pivot Point R3 1.3268

Source: Fx Street

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