USD/CAD hangs near two-week lows, below mid-1.3200s

USD/CAD edges lower for the second consecutive session on Monday.
Positive oil prices underpinned the loonie and exerted some pressure.
The USD stood tall near 4-1/2 month tops and helped limit losses.

Haresh Menghani FXStreet

The greenback remained on the defensive against its Canadian counterpart and pushed the USD/CAD pair to fresh two-week lows on the first day of a new trading week.

The pair extended its recent retracement slide from four-month tops and witnessed some follow-through weakness for the second consecutive session on Monday, also marking its fourth day of a negative move in the previous five.

The downside seems limited

Improving global risk sentiment assisted crude oil prices to add to last week's strong gains of around 3.5%, which underpinned demand for the commodity-linked currency – the loonie and kept exerting some pressure on the major.

Oil prices were supported by expectations for further output cuts from major producers. However, concerns of falling fuel demand – caused by the economic fallout from the coronavirus outbreak in China – might cap further gains.

Meanwhile, investors looked past Friday's mixed US macro data and helped the US Dollar Index to hold steady well within the striking distance of 4-1/2 month tops, above the 99.00 mark, which might help limit deeper losses.

Hence, it will be prudent to wait for some strong follow-through selling, possibly below the very important 200-day SMA, before positioning for any further near-term depreciating move amid absent relevant market-moving economic data.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3245
Today Daily Change	-0.0004
Today Daily Change %	-0.03
Today daily open	1.3249

Trends
Daily SMA20	1.3218
Daily SMA50	1.3143
Daily SMA100	1.318
Daily SMA200	1.322

Levels
Previous Daily High	1.327
Previous Daily Low	1.3236
Previous Weekly High	1.333
Previous Weekly Low	1.3236
Previous Monthly High	1.3255
Previous Monthly Low	1.29
Daily Fibonacci 38.2%	1.3249
Daily Fibonacci 61.8%	1.3257
Daily Pivot Point S1	1.3233
Daily Pivot Point S2	1.3217
Daily Pivot Point S3	1.3198
Daily Pivot Point R1	1.3268
Daily Pivot Point R2	1.3287
Daily Pivot Point R3	1.3303

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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