USD/CAD pulls back to 1.4250 amid fresh risk-off

  • USD/CAD recovers from the weekly low following two days of declines.
  • US dollar pulls back amid the political drama at the US Senate, coronavirus updates.
  • WTI remains mildly positive, US data, voting on the COVID-19 bill become the key.

With the risk-off re-entering the markets, USD/CAD bounces off the weekly low to 1.4250, up 0.40%, during the initial treading hours of Thursday. Uncertainties surrounding the US COVID-19 Bill as well as coronavirus updates could be cited as the main catalysts for the latest risk aversion.

Despite agreeing over the $2.2 trillion aid package the previous day, the US policymakers are unclear about the execution while the Democrats show disappointment and signal amendments. The same could delay the final voting on the much-awaited stimulus bundle that the Republicans signaled to arrive soon.

On the other hand, coronavirus (COVID-19) worries are also drawing fresh strength from Japan and the UK. The latest stats from Britain suggest the pandemic is ignoring the government’s efforts to combat the disease while the US continues to struggle with the virus hitting New York.

WTI seems to take clues from the geopolitical tension between the west and the Middle East as well as the latest inventory numbers but seems to weigh on the Loonie pair.

While portraying the risk-tone the US 10-year treasury yields slip five basis points (bps) to revisit near 0.80% mark whereas stocks in China and Japan turn negative again.

Moving on, traders could keep eyes on the US Senate developments and the virus updates for the short-term direction while the likely sharp run-up in the US Jobless Claims makes the weekly reading important.

Technical Analysis

The pair needs to regain its place beyond a 10-day SMA level of 1.4280 to revisit 1.4350 and 1.4530 numbers to the north. Until then, odds of its drop to the sub-1.4000 region can’t be ruled out.

Additional improtant levels

Today last price 1.4246
Today Daily Change 54 pips
Today Daily Change % 0.38%
Today daily open 1.4192
Daily SMA20 1.3871
Daily SMA50 1.348
Daily SMA100 1.3323
Daily SMA200 1.3259
Previous Daily High 1.4484
Previous Daily Low 1.4178
Previous Weekly High 1.4668
Previous Weekly Low 1.3788
Previous Monthly High 1.3465
Previous Monthly Low 1.3202
Daily Fibonacci 38.2% 1.4295
Daily Fibonacci 61.8% 1.4367
Daily Pivot Point S1 1.4086
Daily Pivot Point S2 1.398
Daily Pivot Point S3 1.3781
Daily Pivot Point R1 1.4391
Daily Pivot Point R2 1.459
Daily Pivot Point R3 1.4696



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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

AUD/USD holds onto recovery gains above 0.6050, RBA eyed

AUD/USD stays within the two-hour-old 0.6080-6100 range, currently around 0.6090, while stepping forward for Tuesday’s Asian session. In doing so, the pair holds onto Monday’s recovery gains, mainly due to slightly positive coronavirus (COVID-19) data from Europe, ahead of the key RBA meeting.


USD/JPY: Mildly bid above 109 amid mixed sentiment

Having benefited from the recovery in virus data from global hot-spot, while marking a three-day winning streak on Monday, USD/JPY buyers seem to catch a breath around 109.25 amid the early Asian session on Tuesday.


Gold: Refreshes four-week high, $1,685 on bulls’ radar

Gold prices remain on the front foot while taking the bids near $1,668, up 0.70%, amid the Asian session on Tuesday. In doing so, the bullion refreshes the four-week high with an intraday peak of $1,674.15 while also marking a fifth consecutive daily gain.

Gold News

WTI snaps three-day winning streak

WTI oil fell by over 8% on Monday, ending a three-day winning streak, which saw prices rise from $19.94 to $29.11. The black gold fell as Saudi Arabia and Russia's decision to delay an emergency meeting to discuss output cuts shifted focus back to oversupply concerns.

Oil News

Johnson Hospitalised, Oil Awaits Treatment

Sterling slipped after UK Prime Minister Boris Johnson was moved to the intensive care unit for coronavirus treatment, but the broad risk trade remained strong on optimism with slowing growth in the number of Corona virus cases. 

Read more