USD/CAD eases from 18-month tops, bulls struggle above 1.3500 handle
• The USD fails to build on the post-FOMC rebound and remained on the defensive.
• The ongoing bearish fall in oil prices weighing on Loonie and helps limit downside.
The USD/CAD pair held within striking distance of over 18-month tops, albeit seemed struggling to build on the momentum further beyond the key 1.3500 psychological mark.
Against the backdrop of Wednesday's softer than expected Canadian inflation figures, a sudden fall in crude oil prices weighed heavily on the commodity-linked Loonie and helped the pair to find decent support ahead of the 1.3400 handle.
The up-move got an additional boost, lifting the pair to its highest level since early-June 2017, amid a goodish US Dollar rebound after not so dovish FOMC monetary policy statement/economic projections, foreseeing two rate hikes in 2019.
The greenback, however, failed to capitalize on the overnight rebound and remained on the defensive, which was eventually seen exerting some downward pressure on the major, though the downside might still be limited amid the ongoing bearish fall in crude oil prices.
Hence, it would be prudent to wait for a strong follow-through long-unwinding/meaningful retracement before confirming that the pair might have already printed a near-term top around the 1.3500 handle.
There aren't any major market-moving economic releases due either from the US or Canada and hence, the USD/oil price dynamics might continue to act as key determinants of the pair's momentum through Thursday's trading session.
Technical levels to watch
Today Last Price: 1.3471
Today Daily change: -24 pips
Today Daily change %: -0.178%
Today Daily Open: 1.3495
Previous Daily SMA20: 1.333
Previous Daily SMA50: 1.3206
Previous Daily SMA100: 1.3111
Previous Daily SMA200: 1.3037
Previous Daily High: 1.3508
Previous Daily Low: 1.3415
Previous Weekly High: 1.3424
Previous Weekly Low: 1.3292
Previous Monthly High: 1.336
Previous Monthly Low: 1.3048
Previous Daily Fibonacci 38.2%: 1.3472
Previous Daily Fibonacci 61.8%: 1.3451
Previous Daily Pivot Point S1: 1.3438
Previous Daily Pivot Point S2: 1.338
Previous Daily Pivot Point S3: 1.3345
Previous Daily Pivot Point R1: 1.353
Previous Daily Pivot Point R2: 1.3565
Previous Daily Pivot Point R3: 1.3622