USD/CAD extends recovery from 1-month lows, further beyond 1.3200 handle


  • A modest pickup in the USD demand helped regain some traction.
  • Weaker oil prices undermined the Loonie and remained supportive.

The USD/CAD pair built on its steady intraday move up and is currently placed at the top end of its daily trading range, around the 1.3225 region.
 
A combination of supportive factors helped the pair to regain some positive traction on the first day of a new trading week and recover a part of the previous session's sharp intraday slide to one-month lows – touched in reaction to upbeat Canadian employment details.

Weaker Oil/pickup in the USD demand underpinned

However, a slight deterioration in the global risk sentiment, despite a positive outcome from the much-hyped US-China trade talks, benefitted the US Dollar's relative safe-haven status against its Canadian counterpart and extended some support to the major.
 
This coupled with a sharp intraday slide in Crude Oil prices, on lingering doubts about the outlook for the world economy, further undermined demand for the commodity-linked currency - Loonie and remained supportive of the bid tone surrounding the pair.
 
It, however, remains to be seen if the pair is able to capitalize on the positive momentum or run into some fresh supply at higher levels amid firming market expectations that the Fed will cut interest rates further at its upcoming monetary policy meeting on October 29-30.
 
Both the US and Canadian markets will remain closed on Monday in observance of Columbus Day and Thanksgiving Day, respectively. Hence, absent relevant market-moving economic data on Monday leaves the pair at the mercy of USD/Oil price dynamics.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3224
Today Daily Change 0.0024
Today Daily Change % 0.18
Today daily open 1.32
 
Trends
Daily SMA20 1.3273
Daily SMA50 1.3267
Daily SMA100 1.3243
Daily SMA200 1.3287
 
Levels
Previous Daily High 1.3302
Previous Daily Low 1.317
Previous Weekly High 1.3348
Previous Weekly Low 1.317
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3221
Daily Fibonacci 61.8% 1.3251
Daily Pivot Point S1 1.3147
Daily Pivot Point S2 1.3093
Daily Pivot Point S3 1.3016
Daily Pivot Point R1 1.3278
Daily Pivot Point R2 1.3355
Daily Pivot Point R3 1.3409

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD: Bullish breakout faces next challenge at 1.1150

The EUR/USD pair closed the week at around 1.1100, its highest settlement in two months, as poor US data coupled with a relief rally of high-yielding assets ahead of the close. Several European countries will start the week celebrating a holiday.

EUR/USD News

GBP/USD: Post-Brexit relationship taking centre stage

The GBP/USD pair hit 1.2393 on Friday, a two week high, retreating sharply from the level ahead of Trump’s speech to later recover on relief and settle at 1.2345. Cable is technically neutral, although the bullish potential seems limited.

GBP/USD News

Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures