USD/CAD climbs to near 2-week tops, closer to mid-1.3100s

The USD remains supported by tempered expectations for an aggressive easing by the Fed.
The recent pullback in Oil prices undermined Loonie and remained supportive of the move.
A sustained move beyond mid-1.3100s needed to increase prospects for any further recovery.

Haresh Menghani FXStreet

The USD/CAD pair continued gaining positive traction for the third consecutive session on Tuesday and climbed to near two-week tops, around the 1.3135-40 region in the last hour.

The pair built on its recent recovery from yearly lows set last Friday and added to the overnight strong up-move back above the 1.3100 round figure mark amid a follow-through pickup in the US Dollar demand, supported by reduced odds for an aggressive monetary easing by the Fed.

Despite the US President Donald Trump's pressure for immediate rate cuts, the fact that investors have been scaling back expectations of a 50 bps Fed rate cut at the upcoming meeting on July 30-31 underpinned the greenback and remained supportive of the ongoing recovery move.

This coupled with the recent pullback in Crude Oil prices, further weighed down by a vow by the International Energy Agency (IEA) to keep global Oil markets adequately supplied, dented demand for the commodity-linked currency - Loonie and provided an additional boost.

The pair has now moved back closer to the 1.3145-50 supply zone, which if cleared decisively might indicate that a near-term bottom is already in place and thus, pave the way for a further short-covering move amid absent relevant market moving economic releases from the US.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3136
Today Daily Change	0.0018
Today Daily Change %	0.14
Today daily open	1.3118

Trends
Daily SMA20	1.3086
Daily SMA50	1.3268
Daily SMA100	1.3329
Daily SMA200	1.3301

Levels
Previous Daily High	1.3122
Previous Daily Low	1.3041
Previous Weekly High	1.311
Previous Weekly Low	1.3016
Previous Monthly High	1.3529
Previous Monthly Low	1.306
Daily Fibonacci 38.2%	1.3091
Daily Fibonacci 61.8%	1.3072
Daily Pivot Point S1	1.3065
Daily Pivot Point S2	1.3012
Daily Pivot Point S3	1.2983
Daily Pivot Point R1	1.3147
Daily Pivot Point R2	1.3176
Daily Pivot Point R3	1.3229

Author

Haresh Menghani

FXStreet

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

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