- USD/CAD meets fresh sales on Friday and breaks a two-day winning streak.
- Dollar pulls back amid repositioning trade ahead of US NFP report.
- The recent bull run in oil prices benefits the CAD and contributes to the pair’s decline.
- The decline appears limited ahead of the US and Canadian jobs report.
The pair USD/CAD is struggling to capitalize on gains posted in the past two days and is under some selling pressure on Friday. The pair remains under pressure during the first half of the European session and is currently sitting near the daily low, just above the 1.3700 level.
US dollar pulls back from near weekly high amid repositioning trade ahead of monthly US jobs data. The loonie, meanwhile, is supported by Bank of Canada Governor Tiff Macklem’s comments the day before and the recent bull run in crude oil prices.. This, in turn, puts downward pressure on the USD/CAD pair, although the decline appears cushioned, at least for now.
OPEC+’s decision to cut production by about 2 million bpd, the largest decline since the 2020 covid pandemic, continues to act as a tailwind for black gold. However, concerns that a deeper economic recession will affect fuel demand prevent it from increasing further. Also, Prospects for more aggressive Fed policy tightening should limit dollar losses and give some support to the USD/CAD pair.
In fact, the markets seem to be convinced that the US central bank. will keep raising rates at a faster pace to curb inflation and have been pricing in another 75 basis point hike in November. These expectations were reinforced by recent hawkish comments from several Fed officials, who continue to support elevated US Treasury yields. This, coupled with recession fears, supports the prospect of some safe-haven dollar buying.
Additionally, traders will prefer to wait for the release of monthly US and Canadian employment data, due later at the start of the American session. Therefore, it will be prudent to wait for a strong follow-up of selling before confirming that this week’s strong rebound from the psychological 1.3500 level has been exhausted and placing further bearish bets on the USD/CAD pair.
USD/CAD technical levels
USD/CAD
Overview | |
---|---|
last price today | 1.3724 |
daily change today | -0.0025 |
daily change today | -0.18 |
Daily opening today | 1.3749 |
Trends | |
---|---|
daily SMA20 | 1.3454 |
daily SMA50 | 1.3158 |
daily SMA100 | 1.3007 |
daily SMA200 | 1.2849 |
levels | |
---|---|
Previous daily high | 1.3755 |
Previous Daily Low | 1.3565 |
Previous Weekly High | 1.3838 |
Previous Weekly Low | 1,356 |
Previous Monthly High | 1.3838 |
Previous Monthly Low | 1.2954 |
Daily Fibonacci of 38.2% | 1.3682 |
Daily Fibonacci of 61.8% | 1.3638 |
Daily Pivot Point S1 | 1.3624 |
Daily Pivot Point S2 | 1.3499 |
Daily Pivot Point S3 | 1.3433 |
Daily Pivot Point R1 | 1.3814 |
Daily Pivot Point R2 | 1,388 |
Daily Pivot Point R3 | 1.4005 |
Source: Fx Street

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