USD/CAD jumps to two-day tops, inching back closer to mid-1.3200s

A combination of factors assisted USD/CAD to regain traction for the second straight session.
A sharp fall in the global equity markets extended some support to the safe-haven greenback.
A fresh leg down in oil prices undermined the loonie and remained supportive of the move up.

Haresh Menghani FXStreet

A sudden pickup in the USD demand pushed the USD/CAD pair back above the 1.3200 round-figure mark during the early European session.

Worries about the second wave of coronavirus infections, along with speculations of fresh lockdown measures to control the outbreak took its toll on the global risk sentiment. The anti-risk flow was evident from a slump in the equity markets, which drove some haven flows towards the US dollar.

The USD/CAD pair reversed an early dip to the 1.3170 region and has now moved into the positive territory for the second consecutive session. The momentum was further supported by a steep fall in crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie.

In fact, WTI crude oil fell around 2.50% on Monday and moved back closer to the $40.00/barrel mark on the potential return of output from Libya. Adding to this, concerns about the global fuel demand – amid the ever-increasing COVID-19 cases – further weighed on the already weaker black gold.

It will now be interesting to see if the USD/CAD pair is able to capitalize on the move or once again meets with some fresh supply near the 1.3150-60 region. In the absence of any major market-moving economic releases, Monday's key focus will be on a scheduled speech by the Fed Chair Jerome Powell.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3223
Today Daily Change	0.0018
Today Daily Change %	0.14
Today daily open	1.3205

Trends
Daily SMA20	1.3144
Daily SMA50	1.3278
Daily SMA100	1.3499
Daily SMA200	1.352

Levels
Previous Daily High	1.3209
Previous Daily Low	1.3137
Previous Weekly High	1.3247
Previous Weekly Low	1.3128
Previous Monthly High	1.3451
Previous Monthly Low	1.302
Daily Fibonacci 38.2%	1.3182
Daily Fibonacci 61.8%	1.3165
Daily Pivot Point S1	1.3158
Daily Pivot Point S2	1.3112
Daily Pivot Point S3	1.3087
Daily Pivot Point R1	1.323
Daily Pivot Point R2	1.3255
Daily Pivot Point R3	1.3301

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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