USD/CAD eyeing 1.46 en-route Jan 2016 high amid USD demand, oil crash

USD/CAD rejoices broad US dollar demand amid funding distress.
Oil-price collapse weighs heavily on the Canadian dollar.
Canadian coronavirus stimulus fails to impress, as focus shifts to US response.

Dhwani Mehta FXStreet

USD/CAD extended its three-day bullish momentum and printed the highest level since January 2016 at 1.4548 in the last minutes, having gained over 350-pips or 2.40% so far this Wednesday.

The main story remains the relentless US dollar demand across the board, as investors run for the world’s most liquid currency, the greenback, in times of the coronavirus outbreak-led market panic and liquidity crunch. The US dollar index trades near a new three-year high of 101.07, up 1.50% on a daily basis.

Further, the spot finds support from the collapse in oil prices that weighs heavily on the resource-linked Loonie. Canada is heavily dependent on oil exports for its revenues. Oil prices sank to fresh 17-year lows amid escalating Saudi-Russia price war and concerns over the global demand growth amid the virus crisis.

Meanwhile, markets paid a little heed to the upbeat Canadian inflation figures, as the US dollar dynamics remain in play. The CAD also shrugged-off the C$ 27 billion stimulus announced to support the domestic households and businesses in such testing times.

The focus now remains on the US economic stimulus package likely to be passed by the Senate later on Wednesday for fresh trading momentum.

USD/CAD technical levels to watch

USD/CAD

Overview
Today last price	1.4542
Today Daily Change	0.0344
Today Daily Change %	2.42
Today daily open	1.4201

Trends
Daily SMA20	1.3525
Daily SMA50	1.3316
Daily SMA100	1.3247
Daily SMA200	1.3228

Levels
Previous Daily High	1.4277
Previous Daily Low	1.3961
Previous Weekly High	1.3996
Previous Weekly Low	1.3422
Previous Monthly High	1.3465
Previous Monthly Low	1.3202
Daily Fibonacci 38.2%	1.4156
Daily Fibonacci 61.8%	1.4082
Daily Pivot Point S1	1.4016
Daily Pivot Point S2	1.3831
Daily Pivot Point S3	1.3701
Daily Pivot Point R1	1.4331
Daily Pivot Point R2	1.4462
Daily Pivot Point R3	1.4647

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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