USD/CAD on track to post highest daily close in a month near 1.3350

USD/CAD looks to close second straight day in the positive territory.
US Dollar Index renewed monthly highs above 94.00.
WTI trades deep in the red near $36.

Eren Sengezer FXStreet

The USD/CAD pair advanced to its highest level in a month at 1.3389 on Thursday but erased a portion of its daily gains during the American trading hours. As of writing, the pair was up 0.23% on a daily basis at 1.3352. Despite this retreat, however, USD/CAD remains on track to post its highest daily close since September 29th.

Oil selloff continues

The broad-based USD strength and the heavy selling pressure surrounding crude oil provided a boost to USD/CAD for the second straight day on Thursday.

Pressured by the concerns over the negative impact of the surging number of coronavirus cases globally causing an uneven recovery in energy demand, the barrel of West Texas Intermediate (WTI) dropped to a multi-month low of $34.91. At the moment, the WTI is down 3.83% on the day at $35.92.

On the other hand, the poor performance of major European currencies, especially the EUR, helped the greenback continue to gather strength. The US Dollar Index, which closed the first three days of the week in the positive territory, is currently trading at fresh October highs at 94.07, up 0.68% on the day. However, the CAD also seems to have taken advantage of the EUR selloff with the EUR/CAD pair looking to close the day 0.5% lower.

Earlier in the day, the data published by the US Bureau of Economic Analysis revealed that the real GDP in the US grew by 33.1% (advance estimate) on a yearly basis in the third quarter. Although this reading helped market sentiment improve, the USD didn't have a difficult time preserving its strength.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.335
Today Daily Change	0.0026
Today Daily Change %	0.20
Today daily open	1.3324

Trends
Daily SMA20	1.32
Daily SMA50	1.3201
Daily SMA100	1.3337
Daily SMA200	1.3544

Levels
Previous Daily High	1.3334
Previous Daily Low	1.318
Previous Weekly High	1.3204
Previous Weekly Low	1.3081
Previous Monthly High	1.3421
Previous Monthly Low	1.2994
Daily Fibonacci 38.2%	1.3275
Daily Fibonacci 61.8%	1.3239
Daily Pivot Point S1	1.3224
Daily Pivot Point S2	1.3125
Daily Pivot Point S3	1.307
Daily Pivot Point R1	1.3379
Daily Pivot Point R2	1.3433
Daily Pivot Point R3	1.3533

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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