USD/CAD in search of a firm direction, holds steady above mid-1.3100s

  • A modest pullback in the US bond yields kept the USD bulls on the defensive.
  • Weaker Crude Oil prices undermined the Loonie and helped limit the downside.

The USD/CAD pair lacked any firm directional bias and was seen oscillating in a narrow trading band, around mid-1.3100s through the early European session on Wednesday.
A combination of diverging forces – including a subdued US Dollar price action and weaker Oil prices – failed to assist the pair to build on the overnight late rebound from near one-week lows and led to a subdued/range-bound trading action on Wednesday.

Weaker Oil prices lend some support

As investors looked past Tuesday's upbeat US ISM Non-manufacturing PMI, a modest pullback in the US Treasury bond yields held the USD bulls on the defensive and did little to provide any meaningful impetus to the major, rather capped the upside.
The negative factor, to a larger extent, was offset by some follow-through pullback in Crude Oil prices, which undermined demand for the commodity-linked currency – Loonie and helped limit any further downside for the major, at least for the time being.
Oil prices remained depressed on the back of the overnight API report, which showed that US inventories rose by 4.3 million barrel in the week ended November 1, and overshadowed growing optimism over a possible US-China trade deal later this month.
It will now be interesting to see if the pair is able to gain any traction or continues with its lacklustre trading action amid absent relevant economic releases, though a scheduled speech by Chicago Fed President Charles Evans might provide some short-term trading impetus.

Technical levels to watch


Today last price 1.3161
Today Daily Change -0.0003
Today Daily Change % -0.02
Today daily open 1.3164
Daily SMA20 1.3151
Daily SMA50 1.3218
Daily SMA100 1.3197
Daily SMA200 1.3275
Previous Daily High 1.318
Previous Daily Low 1.3114
Previous Weekly High 1.3209
Previous Weekly Low 1.3042
Previous Monthly High 1.3349
Previous Monthly Low 1.3042
Daily Fibonacci 38.2% 1.3155
Daily Fibonacci 61.8% 1.3139
Daily Pivot Point S1 1.3126
Daily Pivot Point S2 1.3088
Daily Pivot Point S3 1.3061
Daily Pivot Point R1 1.3191
Daily Pivot Point R2 1.3218
Daily Pivot Point R3 1.3256



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