USD/CAD rallies back to 1.4200 neighbourhood amid broad based USD strength

USD/CAD caught some aggressive bids and built on the overnight bounce from 1.40 mark.
A goodish pickup in the USD demand turned out to be a key factor driving the pair higher.
A subdued action around the oil markets did little to influence the commodity-linked loonie.

Haresh Menghani FXStreet

The USD/CAD pair climbed to fresh daily tops in the last hour, with bulls now eyeing a move towards reclaiming the 1.4200 round-figure mark.

Following the previous session's sharp intraday pullback of nearly 350 pips and a late bounce from the key 1.40 psychological mark, the pair caught some fresh bids on Wednesday and was being supported by a goodish pickup in the US dollar demand.

Investors remained concerns that the ever-increasing coronavirus cases and broader lockdowns across the world will take its toll on the global economy. This buoyed the USD's status as the global reserve currency and assisted the pair to regain positive traction.

Meanwhile, a subdued oil price dynamics did little to provide any meaningful impetus to the commodity-linked currency – the loonie – or influence the pair's intraday momentum through the early European session on Wednesday.

It will now be interesting to see if the pair is able to capitalize on the move or runs into some fresh supply at higher levels. Later during the early North-American session, the release of the US ISM Manufacturing PMI will be looked upon for some short-term trading opportunities.

Technical levels to watch

USD/CAD

Overview
Today last price	1.4183
Today Daily Change	0.0119
Today Daily Change %	0.85
Today daily open	1.4064

Trends
Daily SMA20	1.4007
Daily SMA50	1.356
Daily SMA100	1.3357
Daily SMA200	1.3277

Levels
Previous Daily High	1.4349
Previous Daily Low	1.4012
Previous Weekly High	1.456
Previous Weekly Low	1.3922
Previous Monthly High	1.4668
Previous Monthly Low	1.3315
Daily Fibonacci 38.2%	1.4141
Daily Fibonacci 61.8%	1.422
Daily Pivot Point S1	1.3934
Daily Pivot Point S2	1.3804
Daily Pivot Point S3	1.3596
Daily Pivot Point R1	1.4271
Daily Pivot Point R2	1.4479
Daily Pivot Point R3	1.4609

Author

Haresh Menghani

FXStreet

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

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.