“¢ The USD struggles to capitalize on the attempted intraday bounce.
“¢ Bullish oil prices underpin Loonie and exert fresh downward pressure.
“¢ Traders now eye US durable goods orders data for some fresh impetus.
The USD/CAD pair struggled to register any meaningful recovery and is currently placed near the lower end of its daily trading range, or fresh one-week lows.
The pair stalled this week’s sharp retracement slide from two-month tops and managed to find some support near mid-1.3300s, though a combination of negative forces kept a lid on the attempted intraday rebound.
The US Dollar failed to capitalize on the early recovery move, supported by a modest uptick in the US Treasury bond yields, and remained on the defensive in wake of Tuesday’s softer US consumer inflation figures.
This coupled with a fresh leg of a surge in crude oil prices underpinned demand for the commodity-linked currency – Loonie and further collaborated towards exerting some downward pressure/capping gains.
In fact, WTI crude oil was up nearly 1.0% for the day and pushed further beyond $57.00/barrel mark, closer to monthly tops amid OPEC+ supply cuts and the US sanctions against Iran/Venezuela.
Hence, it would be prudent to wait for a strong follow-through buying before confirming that the recent corrective slide is over and positioning for the resumption of the prior appreciating move.
Moving ahead, today’s US economic docket, highlighting the release of durable goods orders data and PPI figures will now be looked upon for some fresh trading opportunities later during the early North-American session.
Technical levels to watch
Immediate support is pegged near the 1.3335 region, below which the pair is likely to accelerate the fall further towards challenging the 1.3300 round figure mark. On the flip side, any meaningful up-move is likely to confront strong resistance near the 1.3400 handle, which if cleared might lift the pair back towards monthly swing highs, around the 1.3460-65 supply zone.
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