USD/CAD hangs near two-week lows, up little around 1.3000 mark


  • USD/CAD witnessed some short-covering on Wednesday, albeit lacked any follow-through.
  • The USD bulls remained on the defensive amid the latest optimism over COVID-19 vaccine.
  • Bullish oil prices underpinned the loonie and further collaborated towards capping gains.

The USD/CAD pair touched an intraday high level of 1.3028 in the last hour, albeit lacked any follow-through and quickly retreated few pips thereafter. The pair was last seen hovering around the 1.3000 mark, up around 0.13% for the day.

The pair managed to regain some positive traction during the Asian session on Wednesday and recovered a part of the previous day's sharp fall to two-week lows. The uptick lacked any obvious fundamental catalyst and could be solely attributed to some short-covering, though a combination of factors capped the upside for the USD/CAD pair.

The US dollar was being weighed down by the prevalent upbeat market mood, which remained supported by the latest optimism over a potential early rollout of vaccine for the highly contagious coronavirus disease. Adding to this, clarity on the US political front further boosted investors' confidence and undermined the safe-haven USD.

Meanwhile, progress toward remedies for COVID-19 revived hopes for a swift recovery in the global fuel demand. This, in turn, pushed WTI crude oil prices above the $45 mark for the first time since March, which benefitted the commodity-linked currency – the loonie – and further collaborated to keep a lid on the USD/CAD pair's attempted recovery.

Market participants now look forward to a flurry of top-tier US macro data for some short-term trading opportunities. Wednesday's US economic docket highlights the releases of the preliminary (second estimate) GDP report, Durable Goods Orders, Initial Weekly Jobless Claims and final Michigan Consumer Sentiment Index for November.

The key focus, however, will be on the latest FOMC meeting minutes, which will be scrutinized for the possibility of any further policy easing by the Fed in December. The Fed's policy outlook will play a key role in influencing the near-term USD price dynamics and assist investors to determine the next leg of a directional move for the USD/CAD pair.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3011
Today Daily Change 0.0011
Today Daily Change % 0.08
Today daily open 1.3
 
Trends
Daily SMA20 1.3124
Daily SMA50 1.319
Daily SMA100 1.3246
Daily SMA200 1.3532
 
Levels
Previous Daily High 1.3091
Previous Daily Low 1.3
Previous Weekly High 1.3142
Previous Weekly Low 1.3034
Previous Monthly High 1.339
Previous Monthly Low 1.3081
Daily Fibonacci 38.2% 1.3035
Daily Fibonacci 61.8% 1.3056
Daily Pivot Point S1 1.297
Daily Pivot Point S2 1.294
Daily Pivot Point S3 1.2879
Daily Pivot Point R1 1.3061
Daily Pivot Point R2 1.3121
Daily Pivot Point R3 1.3152

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Bears hold the grip, critical challenge at 1.2000

The greenback firmed up at the end of the week, closing it with substantial gains against most major rivals. Renewed coronavirus concerns and poor macroeconomic data spurred risk-off. EUR/USD is firmly bearish.

EUR/USD News

GBP/USD: Further restrictions in the UK may hit the pound

The GBP/USD pair trimmed most of its weekly gains on Friday and settled in the 1.3580 price zone, amid risk-off fueling dollar’s demand. UK GDP contracted by less than anticipated in November, Industrial Production plunged.

GBP/USD News

Gold: Further decline toward $1,800 remains on the cards

Gold failed to stage a convincing rebound this week. After losing more than 2% in the previous week, the XAU/USD pair extended its slide on Monday and touched its lowest level since early December at $1,817. 

Gold news

Darkest fefore dawn

The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures