USD/CAD falls below 1.3500 for first time since early March


  • USD/CAD struggles to shake off the bearish pressure on Tuesday.
  • The risk-on market environment continues to weigh on the greenback.
  • Rising crude oil prices boost demand for commodity-sensitive loonie.

After testing 1.3500 during the early hours of the European session, the USD/CAD staged a rebound and recovered to 1.3550 before coming under renewed bearish pressure in the last hour. As of writing, the pair was trading at its lowest level since March 9th at 1.3495, losing 0.55% on a daily basis.

The strong risk appetite on Tuesday continues to weigh on the greenback. The US Dollar Index, which tracks the USD's performance against a basket of six major currencies, slumped to its lowest level after US stocks gained traction following a quiet start to the day. At the moment, the index is down 0.28% on the day near 97.50.

Meanwhile, the only data from the US showed that the ISM-NY Business Conditions Index improved to 19.5 in May from 4.3 in April and helped the market mood remain upbeat.

Focus shifts to BoC

On the other hand, hopes of OPEC+ extending and/or deepening the oil output cuts is supporting crude oil prices on Tuesday. With the barrel of West Texas Intermediate trading above $36 with a daily gain of around 1.5%, the loonie is preserving its strength against its rivals.

On Wednesday, the Bank of Canada will announce its interest rate decision and release the policy statement. Previewing this event, “an ongoing upbeat economic outlook may boost the loonie, while pessimism would send it down,” said FXStreet analyst Yohay Elam.

Technical levels to watch for 

USD/CAD

Overview
Today last price 1.3486
Today Daily Change -0.0086
Today Daily Change % -0.63
Today daily open 1.3572
 
Trends
Daily SMA20 1.3941
Daily SMA50 1.402
Daily SMA100 1.3724
Daily SMA200 1.346
 
Levels
Previous Daily High 1.3802
Previous Daily Low 1.3558
Previous Weekly High 1.4008
Previous Weekly Low 1.3715
Previous Monthly High 1.4173
Previous Monthly Low 1.3715
Daily Fibonacci 38.2% 1.3651
Daily Fibonacci 61.8% 1.3709
Daily Pivot Point S1 1.3487
Daily Pivot Point S2 1.3401
Daily Pivot Point S3 1.3243
Daily Pivot Point R1 1.373
Daily Pivot Point R2 1.3888
Daily Pivot Point R3 1.3973

 

 

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