USD/CAD faces pressure near 1.3900 as oil recovers, Fed policy looms

USD/CAD finds offers near 1.3900 as oil price recovers strongly.
The market mood remains risk-off ahead of Fed policy.
In October, fresh US private payrolls were 113K, lower than expectations of 159K.

Sagar Dua FXStreet

The USD/CAD pair faces selling pressure near the round-level resistance of 1.3900 in the early New York session. The Loonie asset remains subdued as a strong recovery in oil prices has strengthened the Canadian Dollar.

Oil prices recovered sharply as the Israeli defense forces (IDR) entered Gaza for a full-scale invasion, which is elevating fears of Iran’s intervention in the Israel-Palestine conflicts. If Iran intervenes, the oil supply chain will be disrupted significantly. It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices support the Canadian Dollar.

The market sentiment is downbeat as investors await the Federal Reserve’s (Fed) monetary policy. As per the CME Fedwatch tool, the decision to keep interest rates unchanged in the range of 5.25-5.50% is certain. However, hawkish guidance is expected due to robust consumer spending and strong labor market conditions.

The US Dollar Index (DXY) climbs close to the crucial resistance of 107.00 despite weak US private payroll data for October. The US Automatic Data Processing (ADP) reported that employers hired 113K job seekers, which was lower than expectations of 159K but significantly higher than the former reading of 89K.

On the Canadian Dollar front, Bank of Canada (BoC) Governor Tiff Macklem said that the central continues to assess whether monetary policy is sufficiently restrictive and is ready to do whatever is required to restore price stability.

USD/CAD

Overview
Today last price	1.3886
Today Daily Change	0.0011
Today Daily Change %	0.08
Today daily open	1.3875

Trends
Daily SMA20	1.3714
Daily SMA50	1.3619
Daily SMA100	1.3454
Daily SMA200	1.3485

Levels
Previous Daily High	1.3892
Previous Daily Low	1.3814
Previous Weekly High	1.3881
Previous Weekly Low	1.3661
Previous Monthly High	1.3892
Previous Monthly Low	1.3562
Daily Fibonacci 38.2%	1.3862
Daily Fibonacci 61.8%	1.3844
Daily Pivot Point S1	1.3828
Daily Pivot Point S2	1.3782
Daily Pivot Point S3	1.375
Daily Pivot Point R1	1.3907
Daily Pivot Point R2	1.3939
Daily Pivot Point R3	1.3985

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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