USD/CAD falls to session lows amid surging oil prices, Canadian CPI in focus

Haresh Menghani FXStreet

• The USD fails to capitalize on the attempted intraday bounce.
• Surging oil prices underpin Loonie and add to the selling pressure.
• Focus remains on today’s release of the latest Canadian CPI figures.

The USD/CAD pair finally broke down of its Asian/early European session consolidative phase and refreshed session lows, below mid-1.31000s in the last hour.

The pair extended previous session's sharp retracement slide from the vicinity of 100-day SMA barrier and traded with a negative bias for the second consecutive session, albeit has managed to hold its neck above three-week lows set at the beginning of this week.

The Fed Chair Jerome Powell's overnight comments, reiterating that the central bank would stay patient on monetary policy, kept a lid on the US Dollar's attempted intraday bounce from multi-week lows and kept exerting some downward pressure.

Adding to this, a strong follow-through surge in crude oil prices provided an additional boost to the commodity-linked currency - Loonie and was seen as one of the key factors behind the pair's latest leg of a sudden drop of around 25-pips in the last hour or so.

The pair has now weakened back to the very important 200-day SMA support, which if broken should pave the way for a further downside, albeit investors' reluctant to place any aggressive bets ahead of today's release of Canadian CPI figures might help limit deeper losses.

Technical levels to watch

USD/CAD

Overview:
    Today Last Price: 1.3148
    Today Daily change %: -0.15%
    Today Daily Open: 1.3168
Trends:
    Daily SMA20: 1.3204
    Daily SMA50: 1.3334
    Daily SMA100: 1.3266
    Daily SMA200: 1.3161
Levels:
    Previous Daily High: 1.3238
    Previous Daily Low: 1.3155
    Previous Weekly High: 1.3294
    Previous Weekly Low: 1.3134
    Previous Monthly High: 1.3664
    Previous Monthly Low: 1.3118
    Daily Fibonacci 38.2%: 1.3187
    Daily Fibonacci 61.8%: 1.3206
    Daily Pivot Point S1: 1.3136
    Daily Pivot Point S2: 1.3105
    Daily Pivot Point S3: 1.3054
    Daily Pivot Point R1: 1.3219
    Daily Pivot Point R2: 1.3269
    Daily Pivot Point R3: 1.3301

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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