Market news

13 May 2022

USD/CAD tumbles to 1.2920, trims weekly losses

  • USD/CAD breaks range and drops to test Wednesday’s low.
  • Wall Street indices rise sharply, extending the rebound.
  • Crude oil prices rise more than 3%, WTI approaches $110.00.

The USD/CAD broke under 1.2990 and quickly tumbled to 1.2923, a two-day low. It is hovering around 1.2945/50, still up for the week, but significantly off high, on its way to the highest weekly close since November 2021.

Market sentiment boosts loonie

The US dollar dropped after the beginning of the American session amid an improvement in market sentiment. The rebound in US stocks and in crude oil helped USD/CAD break the range to the downside.

The Jones is up by 1.41% while the Nasdaq gains 3.35%. Crude oil prices are up more than 3%. The WTI barrel trades at $109.38, more than $10 above Wednesday’s low.

The US Dollar Index is pulling back from multi-year highs. Earlier on Friday reached levels above 105.00 and as of writing, trades at 104.65 down 0.10%. The DXY is falling for the first time after rising for six consecutive days.

A strong barrier at 1.2920

Technical factors contribute to the decline in USD/CAD. The break of the range gave more momentum to the loonie. The slide found support at the 1.2920 area that also contained losses on Wednesday. The 200-hour Simple Moving Average is also seen around that area. A break under 1.2920 should open the doors for a test of 1.2900. Below the next support might be located at 1.2865/70.

The USD/CAD looks bearish in the very short term. A recovery above 1.3020 should change the outlook to neutral/bullish. Above awaits resistance at 1.3045.

Technical levels

 

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2022 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location