USD/CAD continues scaling higher, hits fresh 18-month tops ahead of US/Canadian macro data
• Risk-off mood helps the USD to recover a part of the post-FOMC downfall.
• Bearish crude oil prices continue to undermine Loonie and remained supportive.
• Traders now eye today’s US/Canadian macroeconomic releases for fresh impetus.
The USD/CAD pair quickly reversed an early European session dip to sub-1.3500 level and climbed to fresh multi-month tops, around the 1.3535 region in the last hour.
The pair continued gaining positive traction for the seventh consecutive session on Friday, with a combination of supporting factors helping extend the well-established near-term bullish trajectory.
An extended selloff across global equity markets underpinned the US Dollar's relative safe-haven demand and helped recover a part of the post-FOMC steep decline to the lowest level since Nov. 20.
Adding to this, the prevalent bearish sentiment around oil markets, with WTI crude oil hitting fresh 18-month lows, continued weighed on the commodity-linked Loonie and remained supportive.
With today's strong up-move, the pair remains on track to end in positive territory for the fifth consecutive week and possibly also record its highest weekly close since early May 2017.
Moving ahead, today's important macro releases, both from the US and Canada, will now be looked upon for some meaningful trading impetus on the last trading day of the week.
The US economic docket features the release of final Q3 GDP growth figures and durable goods orders, while from Canada the monthly GDP print and retails sales data will influence sentiment surrounding the Canadian Dollar.
Technical levels to watch
Today Last Price: 1.3536
Today Daily change: 46 pips
Today Daily change %: 0.341%
Today Daily Open: 1.349
Previous Daily SMA20: 1.3346
Previous Daily SMA50: 1.3215
Previous Daily SMA100: 1.3115
Previous Daily SMA200: 1.304
Previous Daily High: 1.3532
Previous Daily Low: 1.3446
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%: 1.3479
Previous Daily Fibonacci 61.8%: 1.3499
Previous Daily Pivot Point S1: 1.3447
Previous Daily Pivot Point S2: 1.3404
Previous Daily Pivot Point S3: 1.3362
Previous Daily Pivot Point R1: 1.3532
Previous Daily Pivot Point R2: 1.3574
Previous Daily Pivot Point R3: 1.3618