Search ForexCrunch

   “¢   Subdued USD price-action does little to provide any meaningful boost.
   “¢   Positive oil prices further collaborate towards capping gains.

The USD/CAD pair caught some bids at the start of a new trading week, albeit lacked any strong conviction and remained capped below 50-day SMA immediate resistance.  

The pair continued with its consolidative price-action for the third consecutive session, with a combination of factors keeping a lid on any meaningful up-move. The US Dollar held on the defensive as investors seemed unimpressed by Friday’s stronger US Q2 GDP growth figures.

This coupled with a positive tone around crude oil prices, which tends to underpin demand for the commodity-linked currency – Loonie further collaborated to a range-bound/subdued price-action through the early European session on Monday.  

In absence of any major market moving economic releases, either from the US or Canada, the USD/oil price dynamics might continue to act key determinants of the pair’s momentum on Monday.

Technical levels to watch

The 1.3085 region (50-day SMA), closely followed by the 1.3100 handle, might continue to act as immediate resistance, above which the up-move could get extended towards 1.3130-35 supply zone.

On the flip side, the 1.3035-25 zone now seems to have emerged as an immediate strong support, which if broken is likely to accelerate the fall towards 100-day SMA support, near the 1.2985 region.