USDCAD Retreats From 1.3200 on escalating global trade tensions at the start of a new trading week. Should traders expect an extension towards the 1.3300 round figure mark? Gain insight into today’s technical analysis.
September, OctaFX – The USDCAD pair continued gaining positive traction for the second consecutive session on Monday, albeit stalled the up-move near the 1.3200 handle.
USDCAD Retreats From 1.3200
Against the backdrop of Friday’s stronger NFP report, which was seen as one of the key factors behind the pair goodish rebound from the 1.3100 neighborhood, escalating global trade tensions kept pushing the pair higher at the start of a new trading week.
However, the prevalent bullish tone around crude oil prices underpinned the commodity-linked currency – Loonie and kept a lid on any further up-move. This coupled with a modest US Dollar retracement further collaborated to the pair’s sudden fall of around 20-pips over the past hour or so.
Today’s US/Canadian economic docket lacks any major market-moving economic releases and hence, the USD/oil price dynamics might continue to act as key determinants of the pair’s momentum ahead of Atlanta Fed President Raphael Bostic’s scheduled speech later in the day.
Technical levels to watch
On a sustained move beyond the 1.3200 handle, leading to a subsequent breakthrough 1.3225 supply zone now seems to pave the way for an extension of the bullish trajectory towards 1.3275-80 intermediate resistance en-route the 1.3300 round figure mark.
Alternatively, weakness back below the 1.3150-40 immediate support might prompt some additional long-unwinding trade and drag the pair back towards 50-day SMA support near the 1.3090 region.
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