Technical analysis: Canadian Dollar softens on Friday, leaks recent gains against Greenback

The Canadian Dollar (CAD) is broadly softer on Friday heading into the trading week’s close, shedding around half a percent against the Japanese Yen (JPY) and the Pound Sterling (GBP). The CAD is also down about a fifth of a percent against the Australian Dollar (AUD), as well as down a tenth of a percent against the Euro (EUR) and the US Dollar.

The USD/CAD roiled during the US trading session, sending the pair down to 1.3420 before recovering into the 1.3475 region. The Loonie is still sharply down from the week’s highs near 1.3605, but it is recovering toward the midrange as Friday markets take aim at the weekend.

Friday’s post-dip recovery sends USD/CAD back into the 200-day Simple Moving Average (SMA) at 1.3477. The long-term moving average has flatlined just below the 1.3800 handle for most of 2024, and the pair is set to continue struggling in the near term as it churns within a rough range between 1.3600 and 1.3400.