USD/CAD recovers early lost ground, bulls await a sustained move beyond 1.3200 mark

1 month ago 12
43 CBD Solutions
USD/CAD attracted some dip-buying near mid-1.3100s and moved back closer to session tops. A sharp intraday turnaround in crude oil prices undermined the loonie and remained supportive. The USD bulls remained depressed despite hotter-than-expected US CPI and capped the upside.

The USD/CAD pair recovered around 45 pips from daily lows, albeit seemed struggling to extend the momentum and remained capped below the 1.3200 mark.

The pair failed to capitalize on the previous day's goodish positive move of around 80 pips and met with some fresh supply on the last day of a new trading week. The USD/CAD pair dropped to an intraday low level of 1.3151 and was being pressured by a weaker tone surrounding the US dollar.

The greenback remained depressed through the early North American session amid uncertainty over the next round of the US fiscal stimulus measures and a pickup in the shared currency. The USD bulls failed to gain any respite from Friday's hotter-than-expected US CPI print for August.

Adding to this, a strong opening in the US equity markets further dented the greenback's relative safe-haven status and weighed on the USD/CAD pair. However, a sharp intraday fall in crude oil prices undermined the commodity-linked loonie and extended some support to the major.

The uptick, however, lacked any strong follow-through and the USD/CAD pair held well within a broader trading range over the past three days or so. This makes it prudent to wait for a sustained move in either direction before traders start positioning for any meaningful intraday momentum.

Meanwhile, bulls are likely to wait for some follow-through buying beyond the 1.3200 mark, above which the USD/CAD pair seems all set to climb back to weekly tops, around the 1.3260 region. Conversely, weakness below mid-1.3100s might turn the pair vulnerable to break below the 1.3100 mark.

Technical levels to watch

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Read Entire Article