USD/CAD Price Analysis: Trades around 1.2600 as the US inflation dust settles
- The loonie looks for risk catalyst, US Michigan Consumer Sentiment eyed.
- The bulls remain well-fed amid softer oil prices, Fed rate hike expectations.
- USD/CAD heads toward 1.2600 level, faces resistance ahead of 50.0% Fibo. level.
USD/CAD is trading close to 1.2600 on Friday's Asian session. The loonie seems to have weathered the US inflation jitters and have comforted itself from the advancing US dollar.
The Fed hike expectations could be the reason for the strength in the greenback. Meanwhile, a pullback in WTI prices also lends support to USD/CAD.
On the US side, the restricted market amid the Treasury market's opening after one day off will put the investors in caution, as they wait for the US Michigan Consumer Sentiment for November to provide impetus.
USD/CAD attempts to push higher but runs into resistance just shy of the 1.2600 mark. The spot has surpassed 1.2580, 50.0% Fibonacci Retracement (Fibo.) level on the daily chart when drawn from September 21 on Thursday, which is refreshing news for the loonie buyers.
The journey north appears brisk as the spot eyes 1.2636 61.8% Fibo. level. If it surpasses the cheerful zone, the pair will test 1.2739, its monthly high (October). Further up, it can test 1.2800 September high.
On the flip side, the support levels for the loonie pair are seen at 50 and 100-day Simple Moving Averages (SMAs), putting cushions around 1.2540 levels. However, if that fails to sustain, 200-day SMA at 1.2474 is the next support beam. Further south, its monthly low is there to alleviate at 1.2288.
The pair's Relative Strength Index (RSI) level has stead fasted towards the overbought zone, suggesting that the upside momentum remains intact. The Moving Average Convergence Divergence (MACD) is bullish and gives out healthy vibes.
Daily Chart
USD/CAD Additional Levels