USD/CAD consolidates gains near 1-1/2 week tops, above 1.4100 mark

USD/CAD continued gaining traction for the third consecutive session on Monday.
Resurgent USD demand, weaker oil prices remained supportive of the positive move.
Bulls took a brief pause near mid-1.4100s, awaiting fresh catalyst before the next leg up.

Haresh Menghani FXStreet

The USD/CAD pair now seems to have entered a bullish consolidation phase and was seen oscillating in a range below mid-1.4100s, or over one-week tops set earlier today.

A combination of supporting factors assisted the pair to build on last week's strong recovery move from six-week lows, around mid-1.3800s and continue gaining traction for the third consecutive session on Monday.

The US dollar was back in demand on the back of deteriorating global risk sentiment amid a US-China spat over the origin of the coronavirus, which overshadowed the latest optimism over re-opening of the economies.

The already weaker sentiment deteriorated further the US President Donald Trump threatened to impose fresh tariffs on China in retaliation to its cover-up and mishandling of the coronavirus outbreak at the early stage.

This coupled with a fresh leg down in crude oil prices undermined demand for the commodity-linked currency – the loonie – and remained supportive of the pair's bid tone through the early European session on Monday.

The latest development comes amid persistent worries about a global supply glut and slump in demand in the wake of coronavirus-induced lockdowns, which exerted some fresh downward pressure on oil prices on the first day of the week.

Bulls, however, took some breather near the 1.4150-55 region as the focus now shifts to this week's important US macro data scheduled at the beginning of a new month, including the closely watched monthly jobs report (NFP).

In the meantime, the USD/oil price dynamics, along with development surrounding the coronavirus saga might contribute towards producing some meaningful trading opportunities in the absence of any major market-moving economic releases.

Technical levels to watch

USD/CAD

Overview
Today last price	1.4089
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	1.4089

Trends
Daily SMA20	1.4034
Daily SMA50	1.3935
Daily SMA100	1.3541
Daily SMA200	1.3387

Levels
Previous Daily High	1.411
Previous Daily Low	1.3933
Previous Weekly High	1.4117
Previous Weekly Low	1.385
Previous Monthly High	1.4299
Previous Monthly Low	1.385
Daily Fibonacci 38.2%	1.4042
Daily Fibonacci 61.8%	1.4
Daily Pivot Point S1	1.3978
Daily Pivot Point S2	1.3867
Daily Pivot Point S3	1.3801
Daily Pivot Point R1	1.4155
Daily Pivot Point R2	1.4221
Daily Pivot Point R3	1.4332

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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