- A combination of supporting factors assisted USD/CAD to regain some traction on Tuesday.
- The USD benefitted from safe-haven flows amid concerns about a surge in COVID-19 cases.
- Weaker crude oil prices undermined the loonie and remained supportive of the pair’s uptick.
The USD/CAD pair maintained its bid tone through the early North American session and was last seen hovering near the top end of its daily trading range, comfortably above mid-1.3500s.
Having found some support near the 1.3525-20 region, the pair managed to regain some positive traction on Tuesday and for now, seems to have stalled its recent pullback from levels beyond the 1.3700 mark. The intraday positive move was supported by a combination of factors – a modest pickup in the US dollar demand and a negative tone surrounding crude oil prices.
The greenback built on the previous day's rebound that followed the release of upbeat US ISM Non-Manufacturing PMI and edged higher through the first half of the trading action on Tuesday. Worries about the continuous surge in coronavirus cases across the world dented the global risk sentiment and benefitted the greenback's relative safe-haven status.
Meanwhile, investors remain concerned that renewed lockdown measures to contain the spread would once again put breaks on the economic activity, which will eventually limit recovery in fuel demand. This was evident from a modest pullback in oil prices, which undermined the commodity-linked currency – the loonie and remained supportive of the USD/CAD pair's uptick.
With Tuesday's move up, the pair has now erased a major part of its losses recorded over the past three trading session. A subsequent strength beyond the 1.3600 round-figure mark will be seen as a fresh trigger for bullish traders and pave the way for additional gains.
In the absence of any major market-moving economic releases, either from the US or Canada, the USD/CAD pair remains at the mercy of the USD/oil price dynamics. This coupled with developments surrounding the coronavirus saga will influence the broader market risk sentiment and produce some meaningful trading opportunities.
Technical levels to watch
|Today last price||1.357|
|Today Daily Change||0.0031|
|Today Daily Change %||0.23|
|Today daily open||1.3539|
|Previous Daily High||1.3567|
|Previous Daily Low||1.352|
|Previous Weekly High||1.3705|
|Previous Weekly Low||1.3545|
|Previous Monthly High||1.3802|
|Previous Monthly Low||1.3316|
|Daily Fibonacci 38.2%||1.3538|
|Daily Fibonacci 61.8%||1.3549|
|Daily Pivot Point S1||1.3517|
|Daily Pivot Point S2||1.3495|
|Daily Pivot Point S3||1.347|
|Daily Pivot Point R1||1.3564|
|Daily Pivot Point R2||1.3589|
|Daily Pivot Point R3||1.3611|
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.