USD/CAD climbs to one-week tops, eyeing a sustained move beyond 1.2800 mark

  • USD/CAD gained strong positive traction for the second consecutive session on Monday.
  • COVID-19 jitters weighed on the risk sentiment and benefitted the safe-haven greenback.
  • Weaker oil prices undermined the loonie and remained supportive of the strong move up.

The USD/CAD pair climbed to one-week tops during the first half of the European session, with bulls now eyeing a sustained move beyond the 1.2800 mark.

A combination of supporting factors assisted the pair to build on the previous session's strong rebound from the vicinity of multi-year lows and gained some follow-through traction on Monday. Concerns about the continuous surge in new COVID-19 cases dented investors' sentiment and benefitted the US dollar's relative safe-haven status.

Investors remain worried about the potential economic fallout from the coronavirus pandemic and imposition of fresh lockdown measures. This, in turn, dampened prospects for a recovery in the fuel demand and weighed on crude oil prices. This was seen as another factor that undermined the commodity-linked loonie and provided an additional boost to the USD/CAD pair.

That said, the risk-off mood led to some follow-through pullback in the US Treasury bond yields, which held the USD bulls from placing aggressive bets. This, along with a modest intraday bounce in oil prices, might further collaborate towards capping any runaway rally for the USD/CAD pair amid absent relevant market-moving economic releases, either from the US or Canada.

This makes it prudent to wait for some strong follow-through buying before confirming that the USD/CAD pair has bottomed out in the near-term and positioning for any further appreciating move. The market focus will now shift to the latest monetary policy update by the Bank of Canada, scheduled to announced later this week on Wednesday.

In the meantime, developments surrounding the coronavirus saga will play a key role in influencing the broader market risk sentiment and demand for the safe-haven USD price dynamics. Apart from this, oil price dynamics will also be looked upon for some short-term trading opportunities around the USD/CAD pair.

Technical levels to watch


Today last price 1.279
Today Daily Change 0.0056
Today Daily Change % 0.44
Today daily open 1.2734
Daily SMA20 1.2763
Daily SMA50 1.2866
Daily SMA100 1.3035
Daily SMA200 1.3335
Previous Daily High 1.2765
Previous Daily Low 1.2634
Previous Weekly High 1.2836
Previous Weekly Low 1.2625
Previous Monthly High 1.301
Previous Monthly Low 1.2688
Daily Fibonacci 38.2% 1.2715
Daily Fibonacci 61.8% 1.2684
Daily Pivot Point S1 1.2657
Daily Pivot Point S2 1.258
Daily Pivot Point S3 1.2526
Daily Pivot Point R1 1.2787
Daily Pivot Point R2 1.2841
Daily Pivot Point R3 1.2918



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD under pressure near 1.2050 amid firmer yields, ahead of Powell

EUR/USD remains on the backfoot around 1.2050, as the US dollar rises with Treasury yields. Concerns about the pace of the yield surge dent the risk appetite. Focus on EZ retail sales and US data ahead of Fed Chair Powell’s speech.


GBP/USD rises above 1.3950 amid tepid market mood

GBP/USD picks up bids above 1.3950 following a bounce from 1.3921. UK unilaterally extended NI border checks, EU vows legal response. US Treasury yields regain upside momentum, driving the US dollar higher. Fed’s Powell will be watched to confirm reflation fears.


XAU/USD sticks to modest gains above $1715, lacks follow-through

The risk-off mood prompted some short-covering around the safe-haven gold on Thursday. An uptick in the US bond yields underpinned the USD and capped gains for the commodity.

Gold News

Ripple prepares for a 70% upswing

Ripple price shows signs of an upswing as it bounces off a stable support barrier around the $0.38 level. The “buy signal” from the SuperTrend indicator coupled with the bullish momentum suggests that a 70% upswing is possible.

Read more

US Dollar Index looks for direction near 91.00 ahead of Powell, data

DXY trades without clear direction around the 91.00 level. Investors’ attention remains on yields and US inflation. Fed’s Powell, Initial Claims next of relevance in the docket.

US Dollar Index News