“¢ Some renewed USD selling does little to build on overnight strong rebound.
“¢ Bullish oil prices underpin Loonie and further collaborate towards capping.
“¢ Investors eye central bankers’ speeches for some fresh directional impetus.
The USD/CAD pair struggled to build on overnight strong up-move and remained capped below the 1.3100 handle through the early European session on Friday.
After yesterday’s goodish rebound, the US Dollar met with some fresh supply on the last trading day of the week and failed to provide any additional boost to the pair’s solid rebound from the 100-day SMA support.
This coupled with the prevailing bullish sentiment around crude oil prices underpinned the commodity-linked currency – Loonie and further collaborated towards keeping a lid on any follow-through up-move for the major.
Despite a combination of negative factors, bulls have managed to hold the pair above mid-1.3000s, an important pivotal point, and hence, a follow-through up-move, towards testing 50-day SMA hurdle, remains a distinct possibility.
Traders now look forward to the release of US durable goods orders data in order to grab some short-term opportunities. The key focus, however, would remain on the highly anticipated speeches by the Fed Chair Jerome Powell and BoC Governor Stephen Poloz at the annual Economic Policy Symposium, in Jackson Hole.
Comments from the respective central bank heads would be closely scrutinized for some fresh clues over the near-term monetary policy outlook and eventually help determine the pair’s next leg of directional move.
Technical levels to watch
Immediate resistance is pegged near the 1.3135 region (50-day SMA), above which the pair seems all set to surpass the 1.3070-75 supply zone and head towards reclaiming the 1.3200 round figure mark.
On the flip side, the 1.3050 area now seems to protect the immediate downside, which if broken might turn the pair vulnerable to slide back towards retesting 100-day SMA strong support, sub-1.30 level.
Share
