USDJPY has 3 key technical levels that have stalled the rally higher today

  • USD/CAD is set to finish the week with losses of 1.22%.
  • The University of Michigan Consumer Sentiment for August surprises the upside and boosts the greenback.
  • US Fed officials are still committed to tackle inflation and reiterated their job is not done.
USD/CAD advances on Friday, erasing Thursday’s losses, after a positive US consumer sentiment report boosted investors’ appetite, propelling US equities higher while the greenback rose. At the time of writing, the USD/CAD is trading at 1.2773. The USD/CAD exchanges hands above its opening price, but earlier in the European session, it tumbled to the daily low at 1.2739, but buyers moved in and lifted the pair above the 100-day EMA at 1.2795. Nevertheless, once the dust settled, the pair stabilized around current prices.
US data revealed during the morning lifted the USD/CAD above its 100-DMA when the University of Michigan showed that the US Consumer Sentiment improved from 52.5 foreseen to 55.1, reaching a three-month high. That is good news for the Federal Reserve; however, inflation expectations for a 5-year horizon jumped above the 3% threshold, while in the short-term, one year, decreased to 5% from 5.2% estimated. Nevertheless, during the week, US inflation data pointed downwards, led by CPI down at 8.5%, while the PPI decelerated to 8.5%. However, Fed officials reiterated that even though data is welcomed, inflation still is “too high,” so the US central bank emphasized its commitment to tackling inflation. On Thursday, San Francisco’s Fed Mary Daly said that inflation remains high and that she favors a 50 bps rate hike. However, she does not discount a 75 rate hike, but it would depend on data. On Friday, Richmond’s Fed Thomas Barkin said that inflation data is welcome, but he wants to see a sustained period of inflation under control. Barkin added he’s undecided about September’s FOMC monetary policy meeting. In the meantime, the US Dollar Index is recovering some ground in the day, is up 0.56%, at 105.676, set to finish below the 106.000 mark.

What to watch

The Canadian economic docket will feature the Consumer Price Index for July, alongside Housing Starts and Retail Sales. On the US side, the calendar will feature the NY Fed Manufacturing, Housing data, Industrial Production, and Retail Sales.

USD/CAD Key Technical Levels

Today last price1.2773
Today Daily Change0.0011
Today Daily Change %0.09
Today daily open1.2766
Daily SMA201.2868
Daily SMA501.2879
Daily SMA1001.2796
Daily SMA2001.2744
Previous Daily High1.2792
Previous Daily Low1.2728
Previous Weekly High1.2985
Previous Weekly Low1.2768
Previous Monthly High1.3224
Previous Monthly Low1.2789
Daily Fibonacci 38.2%1.2752
Daily Fibonacci 61.8%1.2767
Daily Pivot Point S11.2732
Daily Pivot Point S21.2698
Daily Pivot Point S31.2667
Daily Pivot Point R11.2796
Daily Pivot Point R21.2826
Daily Pivot Point R31.286


(Reporting by AJFX Limited, Editing by Shivangi Jadav)

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