USD/CAD eases from 2-week tops, struggles to find acceptance above 1.3300 mark

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.

Haresh Menghani FXStreet

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

USD/CAD

Overview
Today last price	1.3218
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	1.3218

Trends
Daily SMA20	1.3251
Daily SMA50	1.3147
Daily SMA100	1.3178
Daily SMA200	1.3214

Levels
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

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD trims losses, flirts with the 1.1850 zone

EUR/USD is back on the back foot on Wednesday, slipping below the 1.1850 area as the US Dollar picks up some modest traction. The move comes as traders position ahead of a busy run of US data and the release of the FOMC Minutes. Adding to the pullback are reports that the ECB’s Lagarde may step down before completing her term.

GBP/USD flirts with daily highs near 1.3580

GBP/USD manages to set aside two consecutive daily declines and trades with slight gains in the 1.3580 zone on Wednesday. Cable’s uptick comes despite acceptable gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.