USDCAD Extends Consolidative range, fluctuating between gains and losses below the 1.3080 level. What fresh catalysts do the markets await for the next move?
12 September, OctaFX – The USDCAD pair started a sharp increase at the end of August. It rose from a low of 1.2888 and reached a high of 1.3225 on Friday last week.
USDCAD Extends Consolidative range Below 1.3080
Since then, the pair has dropped sharply and today it reached a low of 1.3040 in the Asian session. The spot traded almost unchanged for the day, keeping its range near weekly lows of 1.3043, as the Canadian dollar continues to remain underpinned by the renewed optimism around the NAFTA talks.
NAFTA talks in focus
The US President Trump commented late-Tuesday, “Trade talks going well. Canada wants to make a deal”. Soon after the Canadian Foreign Minister Freeland noted: “Both sides did a lot of thinking over the weekend, so this was a very productive meeting. Having said all of that,
Moreover, the 2% rise in the US oil also collaborated to the overnight recovery in the resource-linked Loonie. WTI rallied on declining US inventories and looming US sanctions on Iran that have triggered supply disruption concerns.
Despite the buoyancy seen around the Canadian dollar, the spot manages to contain the downside amid renewed trade tensions, this time between US and Japan, which helped put the bid back under the US dollar across the board.
USDCAD Technical Levels
FXStreet’s Analyst, Eren Sengezer, noted:
“The immediate resistance for the pair aligns at 1.3080 (100-DMA) ahead of 1.3170 (daily high) and 1.3200/05 (psychological level/Sep. 4 high). On the downside, supports could be seen at 1.3000 (psychological level), 1.2960 (Aug. 7 low) and 1.2900 (Aug. 29 low).”
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