USD/CAD eases from daily tops, 1.3300 handle now seemed to cap gains

Haresh Menghani FXStreet

• The continuation of the recent USD rally to six-week tops helped regain traction on Monday.
• A follow-through weakness in oil prices further undermine Loonie and remain supportive.

The USD/CAD pair caught some fresh bids on Monday, albeit seemed struggling to build on the momentum and move back above the 1.3300 handle.

Combinations of supporting factors helped the pair to regained positive traction at the start of a new trading week and recover a part of Friday's losses, recorded in the aftermath of solid Canadian jobs data.

Despite the recent dovish tilt by the Federal Reserve, the US Dollar climbed to near six-week highs amid resurfacing US-China trade tensions and was seen as one of the key factors lending some support to the major.

Meanwhile, WTI crude oil prices added to last week's slump of nearly 5% and lost some additional ground on Monday, which further undermined the commodity-linked currency - Loonie and remained supportive.

However, the ongoing slide in the US Treasury bond yields kept a lid on any runaway USD rally, which coupled with a modest rebound in oil prices now seemed to collaborate towards capping gains for the major.

It would now be interesting to see if the pair is able to attract any fresh buying interest at the focus remains glued to another round of US-China trade talks on Thursday and Friday in Beijing.

Market expectations over a possible trade deal remain low especially after the US President Donald Trump confirmed on Thursday that he will not meet Chinese President Xi Jinping before a March 1 tariffs deadline.

Moving ahead, there isn't any major market-moving economic data due for release either from the US or Canada and hence, the USD/oil price dynamics might continue to act key determinants of the pair's momentum on Monday.

Technical levels to watch

USD/CAD

Overview:
    Today Last Price: 1.3282
    Today Daily change %: 0.13%
    Today Daily Open: 1.3265
Trends:
    Daily SMA20: 1.3242
    Daily SMA50: 1.3367
    Daily SMA100: 1.3231
    Daily SMA200: 1.3138
Levels:
    Previous Daily High: 1.333
    Previous Daily Low: 1.3232
    Previous Weekly High: 1.333
    Previous Weekly Low: 1.3084
    Previous Monthly High: 1.3664
    Previous Monthly Low: 1.3118
    Daily Fibonacci 38.2%: 1.327
    Daily Fibonacci 61.8%: 1.3293
    Daily Pivot Point S1: 1.3221
    Daily Pivot Point S2: 1.3177
    Daily Pivot Point S3: 1.3123
    Daily Pivot Point R1: 1.332
    Daily Pivot Point R2: 1.3374
    Daily Pivot Point R3: 1.3418

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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