The USD/CAD pair was closed at 1.36401 after placing a high of 1.36698 and a low of 1.36073. Overall the movement of USD/CAD remained flat but slightly bullish throughout the day. The USD/CAD dropped towards the low of 1.3600 level on Thursday after a decisive recovery in the second half of the day due to the strength of the US dollar. However, after climbing near 1.3670 level, the rising crude oil prices helped the commodity-linked currency-Loonie to stay steady against the greenback.
The increased coronavirus cases in the United States heightened the worries of fresh lockdown measures and provided strength to US dollar safe-haven status on Thursday. The US dollar index (DXY) advanced to 97.60 level before going into the consolidation phase and pushed the USD/CAD pair higher. Meanwhile, the data from the US about the Core Durable Goods Orders for May also surged to 4.0% against the expected 2.1% and supported the US dollar. The Durable Goods Orders in May also increased to 15.8% from the forecasted 10.3% and supported the US dollar, which helped USD/CAD to post gains.
However, the increased jobless claims during last week formed the United States to1.480M from the 1.320M of forecast added pressure on the US dollar and limited the gains in USD/CAD pair on Thursday.
Meanwhile, the increased Crude Oil prices on Thursday to the $39 level gave support to the Canadian dollar, which capped the USD/CAD pair’s gains. Whereas, there was no macroeconomic data to be released from the Canadian side, which gave small movements in the pair on Thursday.
Daily Technical Levels
Pivot Point: 1.3638
On Friday, the USD/CAD seems to exhibit bullish bais, especially after violating the downward trendline resistance level of 1.3550. As we can see, the commodity currency has violated the descending triangle pattern, and with this, the odds of bullish trend continuation increases. On the higher side, we may see Canadian dollar soaring until the level of 1.3688, which also marks a double top level. Above 1.3688, the next resistance level can be found around 1.3795, while support holds around 1.3550. Before we enter a buy trade, we should wait for correction until the 1.3550 level.