USD/CAD extends losses below 1.3600 as US dollar stays offered


  • USD/CAD reverses from 1.3602, snaps two-day winning streak.
  • US dollar losses its charm amid virus woes, rising equities.
  • WTI attempts recovery on the greenback weakness but fails to defy increasing odds of the supply hike.

USD/CAD takes offers around 1.3560/55, down 0.24% on a day, while heading into the European session on Monday. The loonie pair earlier benefited from WTI weakness but failed to cross 1.3600 as the US dollar extends Friday’s losses amid the mildly upbeat session.

The US dollar index (DXY), a gauge of the greenback versus the major currencies, drops over 0.25% to 96.40 by the press time. While increasing odds of the further stimulus propels global markets and diverts funds off the US currency, a sustained surge in the American numbers of the coronavirus (COVID-19) makes it a little appreciable for the world’s largest economy.

With over 66,500 cases, the US continues to lead the global pandemic numbers followed by Brazil and India. The World Health Organization (WHO) cites the macro surge of over 13.00 million in whereas Reuters highlight figures from Florida and Texas to portray the pandemic outbreak in the US. Even so, Trump administration is pushing hard for the schools to re-open while also praising anti-mask rally.

However, markets cheer upbeat signals of further aid packages from the US and the UK, not to forget the Asian quest to combat the virus, to portray the risk-on mood. In doing so, the US 10-year treasury yields seesaw near 0.63% and S&P 500 Futures gain over 0.50% whereas stocks in Asia-Pacific also mark notable gains as we write.

Not everything is positive for the Canadian dollar (CAD) as the nation’s recent rejection to join the US and Mexico in trade talks gains support from the oil price weakness to challenge the currency bulls. WTI trims the early-day losses but stays over 0.75% in red while taking rounds to $40.45 amid increasing calls of further supplies from Saudi Arabia and Iran.

Moving on, a lack of major data/events will keep the traders pushed towards the virus headlines, also news surrounding China, for fresh impetus. However, the quote’s additional weakness depends upon how well the markets manage to extend the latest gains against all odds.

Technical analysis

200-day SMA, currently around 1.3500, becomes the tough nut to crack for the pair sellers.

ADditional important levels

Overview
Today last price 1.3558
Today Daily Change -32 pips
Today Daily Change % -0.24%
Today daily open 1.359
 
Trends
Daily SMA20 1.3584
Daily SMA50 1.372
Daily SMA100 1.3827
Daily SMA200 1.3503
 
Levels
Previous Daily High 1.3632
Previous Daily Low 1.3575
Previous Weekly High 1.3632
Previous Weekly Low 1.3491
Previous Monthly High 1.3802
Previous Monthly Low 1.3316
Daily Fibonacci 38.2% 1.361
Daily Fibonacci 61.8% 1.3597
Daily Pivot Point S1 1.3566
Daily Pivot Point S2 1.3542
Daily Pivot Point S3 1.351
Daily Pivot Point R1 1.3622
Daily Pivot Point R2 1.3655
Daily Pivot Point R3 1.3679

 

 

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