- The US Dollar Index breaks below 96.50.
- WTI recovers to $56 to support loonie.
The USD/CAD pair broke below its daily trading range in the last hour and fell to a fresh 6-day low of 1.3213. As of writing, the pair was trading a couple of pips above that level, losing 0.19% on a daily basis.
The selling pressure surrounding the greenback gathered strength in the last hour after several news outlets claimed that the U.S. was pressing for a stable yuan exchange rate in trade talks with China. Additionally, the 10-year T-bond yield extended its slide to put additional weight on the greenback's shoulders. The US Dollar Index, which advanced to its highest level of 2019 last week above the 97 mark, was last seen down 0.32% on the day at 96.46.
Additionally, the improved sentiment in the session helped crude oil prices gain traction and erase its daily losses to allow the loonie to outperform the dollar. Ahead of the weekly API stock report, the barrel of West Texas Intermediate is flat on the day near $56.
There won't be any macroeconomic data released from Canada on Wednesday and the DXY is likely to stay as the primary driver of the pair's action especially after the FOMC publishes the minutes of its last meeting tomorrow.
Key technical levels
USD/CAD
Overview:
Today Last Price: 1.3216
Today Daily change %: -0.19%
Today Daily Open: 1.3241
Trends:
Daily SMA20: 1.3239
Daily SMA50: 1.3359
Daily SMA100: 1.325
Daily SMA200: 1.315
Levels:
Previous Daily High: 1.3258
Previous Daily Low: 1.3225
Previous Weekly High: 1.3341
Previous Weekly Low: 1.3196
Previous Monthly High: 1.3664
Previous Monthly Low: 1.3118
Daily Fibonacci 38.2%: 1.3238
Daily Fibonacci 61.8%: 1.3245
Daily Pivot Point S1: 1.3225
Daily Pivot Point S2: 1.3209
Daily Pivot Point S3: 1.3193
Daily Pivot Point R1: 1.3257
Daily Pivot Point R2: 1.3274
Daily Pivot Point R3: 1.329
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold stays in consolidation above $2,300
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.