The USD/CAD pair staged a goodish rebound on Friday and recovered back closer to the 1.2800 handle during the early European session. Weaker oil prices weigh on commodity-linked Loonie and provide an additional boost. What other events today would provide fresh impetus? Get updated on this 6 April USDCAD Technical Outlook.
6 April, GKFX – The pair stalled this week’s retracement slide from 1.2944 level and now seems to have found decent support near 50-day SMA. A follow-through greenback buying interest, with the key US Dollar Index adding to gains further beyond the 90.00 handle, was seen as one of the key factors behind the uptick.
Weaker oil prices weigh on commodity-linked Loonie
In addition to this, a weaker tone around crude oil prices dented demand for the commodity-linked currency – Loonie and further collaborated to the pair’s ability to defend 50-day SMA technically important support area.
Today’s up-move could also be attributed to some repositioning trade ahead of the keenly watched US monthly jobs report (NFP) and Canadian employment details. This along with the Fed Chair Jerome Powell’s scheduled speech should provide some meaningful impetus on the last trading day of the week.
6 April USDCAD Technical Outlook
On a sustained move beyond the 1.2800 handle, the pair is likely to aim towards challenging the 1.2840 supply zone before eventually darting towards reclaiming the 1.2900 round figure mark.
On the flip side, the 1.2745-40 region (50-day SMA) might continue to lend immediate support and is followed by 100-day SMA near the 1.2700-1.2695 region, which if broken might accelerate the fall further towards the very important 200-day SMA support near the 1.2640-35 zone.
This article 6 April USDCAD Technical Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.