USD/CAD holds steady above 1.2500 mark, lacks follow-through

  • USD/CAD edged higher for the third successive session on Tuesday.
  • A subdued USD demand capped gains amid a modest uptick in oil.

The USD/CAD pair held on to its modest intraday gains above the key 1.2500 psychological mark through the first half of the European session, albeit lacked any follow-through buying.

The pair built on its recent bounce from the 1.2425-20 support zone and edged higher for the third consecutive session on Tuesday, though a combination of factors capped any meaningful gains. The US dollar remained depressed amid dovish Fed expectations and was further pressured by Monday's disappointing US ISM Manufacturing PMI.

Investors now seem convinced that the Fed will wait for a longer period before slowing its massive monetary support. Apart from this, the risk-on impulse in the markets was seen as another factor that undermined the safe-haven greenback. That said, a solid rebound in the US Treasury bond yields helped limit any deeper losses for the buck.

Meanwhile, a modest uptick in crude oil prices underpinned the commodity-linked loonie and further acted as a headwind for the USD/CAD pair. Expectations for a continuous decline in US oil inventories assisted the black gold to recover a part of the previous day's heavy losses triggered by concerns over the fast-spreading Delta variant of the coronavirus.

There isn't any major market-moving economic data due for release on Tuesday, either from the US or Canada. Hence, the broader market risk sentiment and the US bond yields will influence the USD. Apart from this, traders might further take cues from oil price dynamics for some short-term opportunities around the USD/CAD pair.

Technical levels to watch


Today last price 1.2512
Today Daily Change 0.0004
Today Daily Change % 0.03
Today daily open 1.2508
Daily SMA20 1.2541
Daily SMA50 1.2347
Daily SMA100 1.2369
Daily SMA200 1.2595
Previous Daily High 1.2515
Previous Daily Low 1.2453
Previous Weekly High 1.2605
Previous Weekly Low 1.2422
Previous Monthly High 1.2808
Previous Monthly Low 1.2303
Daily Fibonacci 38.2% 1.2491
Daily Fibonacci 61.8% 1.2477
Daily Pivot Point S1 1.2469
Daily Pivot Point S2 1.243
Daily Pivot Point S3 1.2408
Daily Pivot Point R1 1.2531
Daily Pivot Point R2 1.2554
Daily Pivot Point R3 1.2593



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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD pressured toward 1.17 on Evergrande crisis

EUR/USD is extending its losses, falling toward 1.17. The safe-haven dollar is in demand as the crisis around China's Evergrande deepens and a global slowdown is feared. Tensions toward the Fed decision and also Germany's elections are taking their toll too.


GBP/USD tumbles under 1.37, succumbing to dollar strength

GBP/USD is trading under 1.37, suffering from robust dollar demand. The financial woes of China's Evergrande threaten a drop in global demand. Soaring energy prices are also weighing on sentiment. The Fed and the BOE are eyed later this week.


XAU/USD remains vulnerable while below $1761

Gold price is making a minor recovery attempt from six-week lows of $1742 amid a retreat in the US Treasury yields, as the risk-off mood remains at full steam.

Gold News

Four reasons why XRP price will crash to $0.65

XRP price set up a swing high on August 15 and breached this local top to create a new one on September 6. However, the second attempt failed as the market experienced massive selling pressure the next day. 

Read more

Canadian Federal Elections: Not a very crucial vote

Markets are taking a hands-off approach to Monday’s Canadian Federal election between Prime Minister Justin Trudeau's Liberals and Erin O'Toole's Conservatives. 

Read more