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CANADIAN DOLLAR TRYING TO CAPITALIZE ON HESITATING GREENBACK

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  • Canadian Dollar regains traction after getting knocked down by US Dollar rally.
  • Canada economic calendar data has wrapped up for the week.
  • Crude Oil softly bounces after getting pummeled.


The Canadian Dollar (CAD) is finally catching some relief, digging in its heels and clawing back losses from its three-day backslide against the US Dollar (USD). The Loonie is finding some bids as the Greenback eases slightly heading into the back half of the trading week.

There is little of note remaining on the economic calendar for Canada this week, and USD flows will be in the driver’s seat through Friday.

Fed officials delivered dovish comments, jobless claims were mixed, and investors await another appearance from Federal Reserve (Fed) President Jerome Powell later in the day.

Daily Digest Market Movers: Canadian Dollar bounces back as US Dollar slips

  • The CAD is catching a mild relief rally on Thursday as broader markets trim USD bids.
  • US Fed Presidents Harker and Barkin gave mildly dovish comments early Thursday, both see potential for downside risks.
  • Fed Chairman Jerome Powell speaks later today, investors to be focusing intently.
  • Crude Oil prices are finding a slight lift heading into the back half of the week.
  • CAD discovers support from recovering Crude bids, accelerating the rebound.
  • US Michigan Consumer Sentiment data on Friday to close out the trading week.

Technical Analysis: Canadian Dollar rebounds but shows some weak points

The Canadian Dollar (CAD) is finding enough bullish spark to push the USD/CAD pair back down the charts, but plenty of upside potential remains in the Greenback, and the pair is currently catching a recovery bounce from 1.3750.

1.3800 is set to be the main battleground for the back half of the trading week, with the pair slipping from an intraday high of 1.3807. A bearish continuation from this region will see a new technical ceiling baked into the USD/CAD.

Intraday action is getting hung up with returns to near-term medians. Most daily price action is sticking close to the 200-hour Simple Moving Average (SMA).

Daily candlesticks see the USD/CAD still on the high side of a higher low pattern firming up from a bullish bounce off the 200-day SMA back in late September. The last swing low saw a topside rebound from the 50-day SMA near 1.3650 just last week

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