USD/CAD consolidated in a range near 6-week tops, comfortably above 1.3300 mark


  • USD/CAD remained confined in a range and consolidated the overnight strong positive move.
  • A subdued USD price action held bulls from placing fresh bets ahead of Powell’s testimony.
  • A softer tone surrounding oil prices undermined the loonie and helped limit the downside.

The USD/CAD pair was seen oscillating in a range above the 1.3300 mark through the Asian session and consolidated the previous day's strong positive move to six-week tops.

Rising odds of fresh lockdown measures to curb the second wave of coronavirus outbreak triggered a selloff in the global equity markets. The anti-risk flow provided a strong boost to the US dollar's status as the reserve currency. Apart from this, a steep fall in crude oil prices undermined the commodity-linked currency – the loonie – and further contributed to the USD/CAD pair's momentum on the first day of a new trading week.

However, expectations that the Fed Chair Jerome Powell will reiterate to keep interest rates lower for longer during his congressional testimony later held the USD bulls from placing fresh bets. This, in turn, led to a subdued/range-bound price action through the first half of the trading action on Tuesday. Meanwhile, a softer tone surrounding crude oil prices continued lending some support to the USD/CAD pair and helped limit the downside.

Market participants now look forward to the US economic docket, featuring the releases of Existing Home Sales and Richmond Manufacturing Index. The data might influence the USD price dynamics and produce some short-term trading opportunities during the early North American session. The key focus, however, will be on Powell's testimony, which will play a key role in driving the near-term sentiment surrounding the greenback.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3318
Today Daily Change 0.0011
Today Daily Change % 0.08
Today daily open 1.3307
 
Trends
Daily SMA20 1.3148
Daily SMA50 1.3272
Daily SMA100 1.3491
Daily SMA200 1.3521
 
Levels
Previous Daily High 1.332
Previous Daily Low 1.3171
Previous Weekly High 1.3247
Previous Weekly Low 1.3128
Previous Monthly High 1.3451
Previous Monthly Low 1.302
Daily Fibonacci 38.2% 1.3264
Daily Fibonacci 61.8% 1.3228
Daily Pivot Point S1 1.3212
Daily Pivot Point S2 1.3117
Daily Pivot Point S3 1.3063
Daily Pivot Point R1 1.3361
Daily Pivot Point R2 1.3416
Daily Pivot Point R3 1.3511

 

 

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