- USD/CAD continued scaling higher through the mid-European session on Monday.
- A sharp fall in crude oil prices undermined the loonie and remained supportive.
- The ongoing slump in the US bond yields seemed to cap any strong USD gains.
The USD/CAD pair jumped to two-week tops, levels beyond the 1.3300 mark in the last hour, albeit quickly retreated few pips thereafter.
Having shown some resilience below the very important 200-day SMA on Friday, the pair caught some fresh bids on the first day of a new trading week and was being supported by a combination of factors.
USD/CAD supported by a combination of factors
Fears that the deadly coronavirus is spreading outside of China and might hurt global growth triggered a fresh wave of the global risk-aversion trade, which was evident from a sea of red across equities.
The global flight to safety turned out to be one of the key factors that provided a strong boost to the US dollar's perceived safe-haven status and drove the pair higher through the mid-European session on Monday.
Meanwhile, the outbreak concerns weighed heavily on crude oil prices, now down nearly 4% for the day, which undermined demand for the commodity-linked currency – the loonie – and remained supportive.
However, the risk-off mood-led slump in the US Treasury bond yields seemed to keep a lid on any strong follow-through USD buying and might eventually cap gains for the major, at least for the time being.
Hence, it will be prudent to wait for some strong follow-through buying beyond the month swing high resistance near the 1.3330 region before positioning for any further appreciating move.
Technical levels to watch
|Today last price||1.3218|
|Today Daily Change||0.0000|
|Today Daily Change %||0.00|
|Today daily open||1.3218|
|Previous Daily High||1.327|
|Previous Daily Low||1.3202|
|Previous Weekly High||1.328|
|Previous Weekly Low||1.3202|
|Previous Monthly High||1.3255|
|Previous Monthly Low||1.29|
|Daily Fibonacci 38.2%||1.3227|
|Daily Fibonacci 61.8%||1.3244|
|Daily Pivot Point S1||1.319|
|Daily Pivot Point S2||1.3162|
|Daily Pivot Point S3||1.3122|
|Daily Pivot Point R1||1.3258|
|Daily Pivot Point R2||1.3298|
|Daily Pivot Point R3||1.3326|
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