USD/CAD hits multi-day tops above 1.2750 amid stronger USD, WTI’s drop

USD/CAD extends recovery from multi-month lows.
Firmer T-yields-led USD demand and WTI weakness underpin.
Focus on BOC’s Business Outlook survey, stimulus updates.

Dhwani Mehta FXStreet

USD/CAD is off the five-day highs of 1.2764, although remains strongly bid amid unabated US dollar’s demand and the weakness in oil prices.

The US dollar receives doubt booster shots amid the ongoing surge in the US Treasury yields, as the optimism over additional stimulus coming from Biden’s presidency pushes inflation expectations higher.

Further, the safe-haven greenback also cheers the tepid risk sentiment, induced by the renewed tensions between the US and China over America’s latest move to improve ties with Taiwan.

On the CAD-side of the story, a 1% drop in WTI prices appears to be boding ill for the resource-linked Loonie, in turn collaborating with the upside in USD/CAD. The black gold tripped this Monday amid renewed coronavirus concerns, as the covid cases globally continue growing.

Attention now turns towards the developments around the US stimulus and the Bank of Canada (BOC) Business Outlook Survey for fresh trading impetus. Also, of note will be the speeches by Fed’s Bostic and Kaplan.

USD/CAD technical levels

USD/CAD

Overview
Today last price	1.2755
Today Daily Change	0.0054
Today Daily Change %	0.43
Today daily open	1.27

Trends
Daily SMA20	1.2771
Daily SMA50	1.2907
Daily SMA100	1.3057
Daily SMA200	1.3367

Levels
Previous Daily High	1.2743
Previous Daily Low	1.2659
Previous Weekly High	1.2798
Previous Weekly Low	1.263
Previous Monthly High	1.301
Previous Monthly Low	1.2688
Daily Fibonacci 38.2%	1.2711
Daily Fibonacci 61.8%	1.2691
Daily Pivot Point S1	1.2658
Daily Pivot Point S2	1.2616
Daily Pivot Point S3	1.2573
Daily Pivot Point R1	1.2742
Daily Pivot Point R2	1.2785
Daily Pivot Point R3	1.2827

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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