USD/CAD climbs back closer to Friday’s swing high, near mid-1.4100s


  • A combination of factors assisted USD/CAD to catch some bids on Monday.
  • The USD stalled its recent downtrend and managed to gain some traction.
  • A downward spiral in oil undermined the loonie and remained supportive.

The USD/CAD pair gained some follow-through traction through the mid-European session and climbed to fresh daily tops, closer to mid-1.4100s in the last hour.

The pair stalled its recent sharp pullback from multi-year tops and caught some aggressive bids on the first day of a new trading week, snapping four consecutive days of losing streak in the wake of a fresh downward spiral in crude oil prices.

Oil prices fell sharply on Monday and briefly dropped below the key $20 psychological mark, hitting its lowest level in 18-years amid concerns over a further decline in demand on the back of COVID-19-related travel restrictions.

Weaker oil prices undermined demand for the commodity-linked currency – the loonie. This coupled with a modest pickup in the US dollar demand provided an additional boost and remained supportive of the pair's intraday positive move.

As investors looked past the Fed's unlimited QE, the greenback found some support in the wake of the latest optimism over a massive $2.2 trillion US economic stimulus package and for now, seems to have ended its week-long bearish trend.

Adding to this, mounting fears over the economic fallout from the coronavirus pandemic continued weighing on investors' sentiment, which further benefitted the greenback's perceived safe-haven status against its Canadian counterpart.

It will now be interesting to see if the pair is able to capitalize on the momentum further beyond Friday's swing highs – set in reaction to the Bank of Canada's surprise move to lower interest rates – or meets with some fresh supply at higher levels.

Technical levels to watch

USD/CAD

Overview
Today last price 1.4136
Today Daily Change 0.0153
Today Daily Change % 1.09
Today daily open 1.3983
 
Trends
Daily SMA20 1.3931
Daily SMA50 1.3518
Daily SMA100 1.3339
Daily SMA200 1.3267
 
Levels
Previous Daily High 1.4155
Previous Daily Low 1.3922
Previous Weekly High 1.456
Previous Weekly Low 1.3922
Previous Monthly High 1.3465
Previous Monthly Low 1.3202
Daily Fibonacci 38.2% 1.4011
Daily Fibonacci 61.8% 1.4066
Daily Pivot Point S1 1.3885
Daily Pivot Point S2 1.3787
Daily Pivot Point S3 1.3652
Daily Pivot Point R1 1.4118
Daily Pivot Point R2 1.4253
Daily Pivot Point R3 1.4351

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD coming up for a breath of air in support

EUR/USD holding up at critical support in the hourly chart. ECB and Fed are in focus with critical data to end the week. The end of the week for European and US markets will bring plenty of key data for which could still some volatility for traders to enjoy. 

EUR/USD News

GBP/USD wobbles around 1.3800 on Brexit, inflation chatters, UK Retail Sales, PMIs eyed

GBP/USD struggles to extend pullback from monthly high. UK PM Johnson ready to compromise Brexit, NI protocol terms, British covid infections jump. Inflation expectations jump to multi-year high in the UK, US.

GBP/USD News

Gold flirts with $1,790 hurdle on mixed concerns ahead of US PMI

Gold refreshes intraday high to $1,787 during the four-day run-up amid early Friday. The yellow metal witnessed pullback the previous day amid firmer USD, on relation fears, but the latest sentiment-positive headlines seem to have favored the gold buyers.

Gold News

Ethereum Classic price lags behind Bitcoin and XRP despite upcoming rally

Ethereum Classic price action for the Thursday trade session has been the definition of a whipsaw. The daily candlestick open has dropped as much as 9.5% and spiked higher by as much as 10.5% - big swings in all directions.

Read more

The idea of inflation falling back by (say) March is a fantasy

We get some non-movers today like the Philly Fed, Sept existing home sales, and leading indicators, but let’s face it, jobless claims own the space. Claims are not behaving as expected and are wildly at odds with job openings. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures