USD/CAD bears battles 1.3000 threshold amid US dollar declines, WTI strength

USD/CAD drops for the seventh day, to the lowest since September 01.
DXY refreshes 10-week low as risks stay bid following US elections.
WTI benefits from USD weakness, upbeat market sentiment amid a light calendar.

Anil Panchal FXStreet

USD/CAD takes offers around the intraday low of 1.3007, down 0.27% on a day, while heading into Monday’s European session. In doing so, the quote benefits from the broad US dollar weakness and upbeat performance of Canada’s main export, WTI crude oil.

Be it S&P 500 Futures or the Asian stocks, needless to mention the US 10-year Treasury yields, risk barometers cheer Joe Biden’s victory in the US presidential elections. The market optimism ignores Donald Trump’s challenges to multiple results as well as fears that the Republicans can still keep the power in the Senate. Also joining the line of the risk-negative news is the recent resurgence of the coronavirus (COVID-19) in the US and Europe.

With the upbeat trading sentiment weighing on the US dollar’s safe-haven demand, the US dollar index (DXY) declines to the fresh low since the September-start, currently down 0.10% intraday to 92.18.

Other than the greenback weakness, WTI’s rise above $38.00 also favors the USD/CAD sellers. By press time, the oil benchmark trims the early-Asian gains, which were once above 2.0%, while declining to $38.30.

Moving on, global market players will keep eyes on the risk catalysts amid a light calendar for fresh impetus. However, the risk-on mood is likely to continue supporting the USD/CAD bears.

Technical analysis

An ascending trend line from December 31, 2019 and September month’s low, respectively around 1.3000 and 1.2995, restrict the pair’s short-term downside. Meanwhile, an upside clearance of the 1.3100 immediate resistance can escalate the corrective recovery towards the mid-October top near 1.3260.

Additional important levels

Overview
Today last price	1.3009
Today Daily Change	-34 pips
Today Daily Change %	-0.26%
Today daily open	1.3043

Trends
Daily SMA20	1.3176
Daily SMA50	1.3204
Daily SMA100	1.3308
Daily SMA200	1.3544

Levels
Previous Daily High	1.3097
Previous Daily Low	1.3019
Previous Weekly High	1.337
Previous Weekly Low	1.3019
Previous Monthly High	1.339
Previous Monthly Low	1.3081
Daily Fibonacci 38.2%	1.3049
Daily Fibonacci 61.8%	1.3067
Daily Pivot Point S1	1.3009
Daily Pivot Point S2	1.2976
Daily Pivot Point S3	1.2932
Daily Pivot Point R1	1.3087
Daily Pivot Point R2	1.3131
Daily Pivot Point R3	1.3165

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.