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.

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