- A combination of factors assisted USD/CAD to regain some positive traction on Tuesday.
- Concerns about the ever-increasing coronavirus cases benefitted the safe-haven greenback.
- A mildly weaker tone around oil prices undermined the loonie and remained supportive.
- A sustained move beyond the 1.3700 mark needed to increase prospects for further gains.
The USD/CAD pair edged higher during the early European session and refreshed daily tops, around the 1.3690 region in the last hour.
Following the previous day's intraday pullback and a brief consolidation through the early part of Tuesday's trading action, the pair managed to regain some positive traction and was being supported by a combination of factors.
The US dollar was back in demand amid fading hopes of a sharp V-shaped global economic recovery. The ever-increasing number of coronavirus cases served as a warning signal that the road to recovery will be much slower than expected.
Meanwhile, possibilities of renewed lockdown measures to contain the outbreak dampened prospects for a swift recovery in the fuel demand. This led to some weakness in oil prices and undermined the commodity-linked currency – the loonie.
However, the USD/CAD pair has repeatedly failed to find acceptance, or build on the momentum beyond the 1.3700 mark. The recent price action warrants some caution before positioning for any further near-term appreciating move.
Moving ahead, market participants now look forward to the US economic docket – featuring the release of Chicago PMI and the Conference Board's Consumer Confidence Index. Apart from this, the Fed Chair Jerome Powell is scheduled to testify before the House Financial Services Committee along with the US Treasury Secretary Steven Mnuchin. This might eventually influence the USD price dynamics and produce some short-term trading opportunities.
Technical levels to watch
|Today last price||1.3685|
|Today Daily Change||0.0026|
|Today Daily Change %||0.19|
|Today daily open||1.3659|
|Previous Daily High||1.3705|
|Previous Daily Low||1.3647|
|Previous Weekly High||1.3716|
|Previous Weekly Low||1.3486|
|Previous Monthly High||1.4173|
|Previous Monthly Low||1.3715|
|Daily Fibonacci 38.2%||1.3669|
|Daily Fibonacci 61.8%||1.3683|
|Daily Pivot Point S1||1.3636|
|Daily Pivot Point S2||1.3613|
|Daily Pivot Point S3||1.3578|
|Daily Pivot Point R1||1.3694|
|Daily Pivot Point R2||1.3728|
|Daily Pivot Point R3||1.3751|
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.