USD/CAD climbs to multi-day high amid sliding oil prices, modest USD rebound

A combination of supporting factors pushes USD/CAD higher for the second straight day.
Weaker oil prices undermine the loonie and offer support amid a modest USD rebound.
Recession fears weigh on investors’ sentiment and seem to benefit the safe-haven buck.

Haresh Menghani FXStreet

The USD/CAD pair builds on the overnight goodish bounce from its lowest level since June 10 and gains traction for the second successive day on Tuesday. The momentum lifts spot prices to a four-day high, around the 1.2875-1.2880 region during the early North American session, though lacks follow-through.

Crude oil prices remain on the defensive near a two-and-half-week low, which continues to undermine the commodity-linked loonie and act as a tailwind for the USD/CAD pair. The worsening global economic outlook, along with the recent COVID-19 outbreak in China, raises concerns about the fuel demand and is weighing on the black liquid.

The US dollar, on the other hand, stages a modest bounce from its lowest level since July 5 and offers additional support to the USD/CAD pair. The market sentiment remains fragile amid recession fears and mounting diplomatic tensions ahead of US House Speaker Nancy Pelosi's planned Taiwan visit. This, in turn, benefits the safe-haven buck.

The anti-risk flow, along with expectations that the Fed would not hike interest rates as aggressively as estimated, continued dragging the US Treasury bond yields lower. This might hold back the USD bulls from positioning for any further recovery and keep a lid on any meaningful upside for the USD/CAD pair, at least for the time being.

Market participants now look forward to the release of the US JOLTS Job Openings data. This, along with the US bond yields and the broader risk sentiment, might influence the USD and provide some impetus to the USD/CAD pair. Traders would also take cues from oil price dynamics to grab short-term opportunities around the USD/CAD pair.

Technical levels to watch

USD/CAD

Overview
Today last price	1.2869
Today Daily Change	0.0024
Today Daily Change %	0.19
Today daily open	1.2845

Trends
Daily SMA20	1.2933
Daily SMA50	1.2856
Daily SMA100	1.2777
Daily SMA200	1.2726

Levels
Previous Daily High	1.2856
Previous Daily Low	1.2768
Previous Weekly High	1.2947
Previous Weekly Low	1.2789
Previous Monthly High	1.3224
Previous Monthly Low	1.2789
Daily Fibonacci 38.2%	1.2822
Daily Fibonacci 61.8%	1.2801
Daily Pivot Point S1	1.279
Daily Pivot Point S2	1.2734
Daily Pivot Point S3	1.2701
Daily Pivot Point R1	1.2878
Daily Pivot Point R2	1.2912
Daily Pivot Point R3	1.2967

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD faces some resistance near 100-SMA on H4, around 1.1830 zone

The EUR/USD pair gains some follow-through positive traction for the second consecutive day and climbs to the 1.1830 region during the Asian session on Thursday. The US Dollar remains on the back foot amid concerns about the economic fallout from US President Donald Trump's erratic trade policies and acts as a tailwind for spot prices.

GBP/USD extends recovery to near 20-day EMA as US Dollar weakens

The Pound Sterling holds onto weekly gains around 1.3565 against the US Dollar during the Asian trading session on Thursday. The GBP/USD pair trades firmly as the US Dollar remains under pressure due to uncertainty surrounding the United States trade policy outlook.

Gold looks to build on strength beyond $5,200, eyes monthly peak amid safe-haven flows

Gold touches a fresh daily high heading into the European session on Thursday, with bulls looking to build on the momentum beyond the $5,200 mark. This marks the second straight day of a positive move and is supported by sustained safe-haven flows, bolstered by uncertainties surrounding US President Donald Trump's trade policies and US-Iran nuclear talks.

Stellar: Relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Solana strikes key resistance with double-digit gains

Solana trades at $88 at press time on Thursday, after an 11% upswing the previous day within a broader consolidation range of roughly three weeks. Institutional demand for Solana heightens as US spot SOL Exchange Traded Funds record $30 million of inflow on Wednesday.