USD/CAD down little, still holding comfortably above 1.3200 handle


  • A sharp fall in the US bond yields weighed on the USD and capped the upside.
  • Weaker oil prices undermined the Loonie and helped limit any deeper losses.

The USD/CAD pair lacked any firm directional bias and oscillated in a narrow trading band, above the 1.3200 handle through the mid-European session on Tuesday.
 
A combination of diverging factors failed to provide any meaningful impetus or assist the pair to build on the previous session's attempted recovery move from one-month lows, set on Friday in reaction to upbeat Canadian employment details.

Subdued USD demand offset by weaker Oil

The upside remained capped on the back of a subdued US Dollar demand, which failed to capitalize on the recent optimism over US-China trade negotiations and was being weighed down by a sharp intraday fall in the US Treasury bond yields.
 
However, a weaker tone around Crude Oil prices, which tend to undermine demand for the commodity-linked currency – Loonie, turned out to be one of the key factors that helped limit any deeper losses, at least for the time being.
 
Despite a possible escalation of geopolitical tensions in the Middle East, Oil prices added to the previous session's losses and remained depressed in the wake of demand-side concerns emerging from the US-China trade disputes.
 
It will now be interesting to see if the pair is able to break out of its daily consolidative trading range or continues with its sideways price action amid absent relevant market-moving economic releases – either from the US or Canada.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3226
Today Daily Change -0.0010
Today Daily Change % -0.08
Today daily open 1.3236
 
Trends
Daily SMA20 1.3273
Daily SMA50 1.3268
Daily SMA100 1.3241
Daily SMA200 1.3287
 
Levels
Previous Daily High 1.3242
Previous Daily Low 1.3192
Previous Weekly High 1.3348
Previous Weekly Low 1.317
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3223
Daily Fibonacci 61.8% 1.3211
Daily Pivot Point S1 1.3204
Daily Pivot Point S2 1.3173
Daily Pivot Point S3 1.3155
Daily Pivot Point R1 1.3254
Daily Pivot Point R2 1.3273
Daily Pivot Point R3 1.3304

 

 

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