USD/CAD Rebounds From Multi-Month Low, Upside Potential Seems Limited

Image Source: The USD/CAD pair stages a modest bounce from its lowest level since August 4, around the 1.3330 area touched earlier during the Asian session on Wednesday and recovers a part of the previous day’s Canadian CPI-inspired losses. Spot prices currently trade just below mid-1.3300s, up 0.10% for the day, though any meaningful appreciating move still seems elusive.Data released on Tuesday showed that the annual consumer inflation rate in Canada unexpectedly held steady at 3.1% in November, prompting traders to trim their bets as to when the Bank of Canada (BoC) would start cutting interest . This, along with the recent goodish recovery in  prices from the lowest level since late June touched earlier this month, might continue to underpin the commodity-linked Loonie. Apart from this, the underlying bearish sentiment surrounding the US Dollar (USD) might further contribute to capping the USD/CAD pair.The Federal Reserve (Fed) took a dovish turn last week and projected an average of three 25 bps rate cuts in 2024. This, along with the prevalent risk-on environment, keeps the safe-haven Greenback closer to over a four-month low touched last Friday. Meanwhile, a slew of influential Fed officials recently attempted to downplay speculations about an imminent dovish shift in the US central bank’s policy stance, albeit did little to impress the USD bulls. This, in turn, validates the negative outlook for the USD/CAD pair and warrants some caution for bullish traders.Market participants now look to the US economic docket, featuring the release of the Conference Board’s Consumer Confidence Index and Existing Home Sales data. This, along with Chicago Fed President Austan Goolsbee’s appearance, will drive the USD demand later during the North American session and provide a fresh impetus to . Apart from this, Oil price dynamics should allow traders to grab short-term opportunities. The focus, however, will remain glued to the US Core PCE  – the Fed’s preferred inflation gauge – due on Friday. Technical levels to watch USD/CAD

OVERVIEW Today last price 1.3347 Today Daily Change 0.0011 Today Daily Change % 0.08 Today daily open 1.3336

 

TRENDS Daily SMA20 1.3548 Daily SMA50 1.3663 Daily SMA100 1.36 Daily SMA200 1.3507

 

LEVELS Previous Daily High 1.3402 Previous Daily Low 1.3333 Previous Weekly High 1.3619 Previous Weekly Low 1.335 Previous Monthly High 1.3899 Previous Monthly Low 1.3541 Daily Fibonacci 38.2% 1.3359 Daily Fibonacci 61.8% 1.3375 Daily Pivot Point S1 1.3312 Daily Pivot Point S2 1.3289 Daily Pivot Point S3 1.3244 Daily Pivot Point R1 1.338 Daily Pivot Point R2 1.3425 Daily Pivot Point R3 1.3448

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