USD/CAD Analysis: Price Ranges Tightly Despite Stronger Greenback

• USD/CAD fluctuates in a tight range on Friday.
• The Greenback lost some ground on the day as risk sentiment improves.
• Crude oil prices remain silent around yesterday’s level.

The USD/CAD analysis reveals a bearish scenario that may find a temporary breather but broadly maintains a negative outlook. The USD/CAD pair continues to fluctuate daily despite the moderate selling pressure around the dollar at the start of the American session on Friday. The pair is trading near 1.2520 at times of writing with small daily declines.

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Consumer sentiment data is closely monitored as DXY loses popularity.

Falling US Treasury yields weighed on the US dollar index (DXY) as it fell 0.25% to 92.76 on the day. The US Bureau of Labor Statistics released data earlier in the session showing that the import price index and the export price index rose by 0.3% and 1.3%, respectively, in July.

The US import prices for July came at 0.3% against the expectations of 0.6%. Thus, the data slightly missed the expectations but couldn’t weigh heavily on the US Dollar.

The University of Michigan consumer sentiment figures came at 70.2 against the expected 81.2. However, the missed data has not a tendency to impact the currency market.

In the meantime, crude oil prices are trading sideways on Friday, which does not indicate that the Canadian dollar will impact commodities. The current price of West Texas Intermediate (WTI) oil is about the same as it was yesterday at $ 69 a barrel. As well, Baker Hughes Energy Services’ weekly oil rig counts report seeks new momentum.

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USD/CAD technical analysis: Bearish continuation developing

The USD/CAD pair has done a 30% average daily so far. The price has not moved quite a lot on Friday. The price is wobbling closely to 20-period and 50-period SMAs on the 4-hour chart. The 200-period SMA on the same chart continues to lend support just under 1.2500 handle. Although the pair looks positive to move forward, awaiting catalyst, not to forget the price has formed a bearish flag pattern that is also awaiting a breakout.

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