USD/CAD eases from one-month high, still well bid around 1.3640 area amid stronger USD


  • USD/CAD catches fresh bids and climbs to a one-month high amid broad-based USD strength.
  • The softer US PCE Price Index fails to impress the USD bulls or provide any meaningful impetus.
  • An intraday bounce in Oil prices underpins the Loonie and contributes to cap gains for the pair.

The USD/CAD pair regains positive traction following the previous day's downfall and climbs to a fresh one-month top, around the 1.3665-1.3670 area during the early North American session on Friday. Spot prices, however, trim a part of the intraday gains and retreat below mid-1.3600s in reaction to the mixed US macro data.

In fact, the US Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) Price Index declined more-than-expected, to the 4.2% YoY rate in March from 5.1% previous. The Core PCE Price Index (the Fed's preferred inflation gauge), meanwhile, edged lower to 4.6% from 4.7% as compared to consensus estimates for a fall to 4.5%. In the absence of any big surprises, the US Dollar (USD) fades an intraday bullish spike to a two-and-half-week high amid a steep decline in the US Treasury bond yields and turns out to be a key factor acting as a headwind for the USD/CAD pair.

Apart from this, a modest intraday rebound in Crude Oil prices underpins the commodity-linked Loonie and further contributes to capping gains for the USD/CAD pair, at least for the time being. The Canadian Dollar (CAD), however, struggles to gain any meaningful traction in the wake of the softer domestic GDP report, which showed that the economy grew by 0.1% in February as compared to the 0.6% increase reported in the previous month. This, in turn, suggests that the path of least resistance for spot prices is to the upside and any corrective pullback is more likely to get bought into.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3635
Today Daily Change 0.0043
Today Daily Change % 0.32
Today daily open 1.3592
 
Trends
Daily SMA20 1.3482
Daily SMA50 1.3584
Daily SMA100 1.3528
Daily SMA200 1.3426
 
Levels
Previous Daily High 1.3646
Previous Daily Low 1.3589
Previous Weekly High 1.3563
Previous Weekly Low 1.3343
Previous Monthly High 1.3862
Previous Monthly Low 1.3508
Daily Fibonacci 38.2% 1.3611
Daily Fibonacci 61.8% 1.3624
Daily Pivot Point S1 1.3572
Daily Pivot Point S2 1.3552
Daily Pivot Point S3 1.3515
Daily Pivot Point R1 1.3628
Daily Pivot Point R2 1.3665
Daily Pivot Point R3 1.3685

 

 

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