USD/CAD hits highest since October

USD/CAD hits multi-month highs as oil takes a beating.
Investors are adding bets to position for gains in USD/JPY, options market data shows.

Omkar Godbole FXStreet Contributor

The Canadian dollar is on the offer in Asia and is powering gains in the USD/CAD pair.

The currency pair rose to 1.3348 a few minutes ago to hit the highest level since Oct. 3 and was last seen trading at 1.3338, representing marginal gains on the day.

Oil drops

West Texas Intermediate (WTI) oil is currently trading at a 13-month low of $48.07, representing a nearly 10% drop on a week-to-date basis.

The black gold has come under pressure, possibly due to coronavirus-led risk aversion in the equity markets and seems to be weighing over the loonie. After all, oil is one of Canada's major exports.

Call demand spikes

One-month risk reversals, a gauge of calls to puts, jumped to 0.425 on Wednesday, to hit the highest level since March 2018. The gauge has in a V-shaped manner from -0.20 to 0.425 in the last four days.

The data indicates the investors are adding bets (call options) to position for a sustained rally in the USD/CAD pair.

Technical levels

USD/CAD

Overview
Today last price	1.334
Today Daily Change	0.0023
Today Daily Change %	0.17
Today daily open	1.3317

Trends
Daily SMA20	1.3268
Daily SMA50	1.3157
Daily SMA100	1.3178
Daily SMA200	1.3212

Levels
Previous Daily High	1.3333
Previous Daily Low	1.3272
Previous Weekly High	1.328
Previous Weekly Low	1.3202
Previous Monthly High	1.3255
Previous Monthly Low	1.29
Daily Fibonacci 38.2%	1.331
Daily Fibonacci 61.8%	1.3295
Daily Pivot Point S1	1.3281
Daily Pivot Point S2	1.3246
Daily Pivot Point S3	1.322
Daily Pivot Point R1	1.3343
Daily Pivot Point R2	1.3369
Daily Pivot Point R3	1.3404

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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