USD/CAD drops below 1.3800 as USD weakens on QE headlines

NY Fed said it will offer additional $500 billion in one-month repo.
US Dollar Index retreats below 97.50 area on this headline.
WTI erases more than 5% to weigh on CAD.

Eren Sengezer FXStreet

The USD/CAD pair came under sudden bearish pressure in the last hour and erased more than 150 pips after the NY Fed announced it will introduce new repo operation. After slumping to 1.3707 with the initial reaction, the pair erased its losses and was last seen trading near 1.3770, where it was virtually flat on the day.

USD weakens on NY Fed's announcement

The NY Fed said it will offer $500 billion in a three-month repo operation at 1:30 pm EST on Thursday and another $500 billion in a one-month operation on Friday. The US Dollar Index, which advances to a fresh two-week high of 98.31 earlier in the day, reversed its direction and was last seen at 97.37, where it was still up 0.78% on a daily basis.

On the other hand, crude oil prices continue to suffer losses amid oversupply concerns and dismal demand outlook in the face of globally surging coronavirus infections numbers. With the barrel of West Texas Intermediate losing nearly 6% and trading below the $32 handle, the commodity-related CAD seems to be having a tough time preserving its strength.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.376
Today Daily Change	-0.0015
Today Daily Change %	-0.11
Today daily open	1.3775

Trends
Daily SMA20	1.3378
Daily SMA50	1.3236
Daily SMA100	1.3211
Daily SMA200	1.3214

Levels
Previous Daily High	1.3795
Previous Daily Low	1.3682
Previous Weekly High	1.344
Previous Weekly Low	1.3315
Previous Monthly High	1.3465
Previous Monthly Low	1.3202
Daily Fibonacci 38.2%	1.3752
Daily Fibonacci 61.8%	1.3725
Daily Pivot Point S1	1.3706
Daily Pivot Point S2	1.3637
Daily Pivot Point S3	1.3593
Daily Pivot Point R1	1.3819
Daily Pivot Point R2	1.3863
Daily Pivot Point R3	1.3932

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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