USD/CAD rallies to fresh one-week tops, inching closer to mid-1.3200s

USD/CAD gained some strong positive traction and rallied to one-week tops on Thursday.
The downbeat market mood benefitted the safe-haven USD and remained supportive.
A steep fall in crude oil prices undermined the loonie and provided an additional boost.

Haresh Menghani FXStreet

The USD/CAD pair continued scaling higher through the early North American session and shot to fresh one-week tops, around the 1.3235 region in the last hour.

A combination of supporting factors prompted some aggressive short-covering move on Thursday and assisted the USD/CAD pair to move away from over one-month lows, around the 1.3100 mark touched earlier this week.

Against the backdrop of a rapid rise in new coronavirus cases, the impasse over the next round of the US fiscal stimulus measures took its toll on the global risk sentiment. This, in turn, benefitted the US dollar's safe-haven status.

The USD bulls seemed rather unaffected by the disappointing release of the Empire State Manufacturing Index and the Initial Weekly Jobless Claims, instead took cues from the upbeat release of the Philly Fed Manufacturing Index.

On the other hand, a steep fall in crude oil prices – now down over 3.5% for the day – undermined the commodity-linked currency – the loonie – and provided an additional boost to the USD/CAD pair.

The strong intraday positive move took along some short-term trading stops placed near the 1.3165 horizontal level. A subsequent move beyond the 1.3200 round-figure mark further contributed to the latest leg of a sudden spike over the past hour or so.

The incoming headlines over the US fiscal stimulus measures will influence the USD price dynamics and produce some trading opportunities. Hence, it remains to be seen if the USD/CAD pair is able to capitalize on the move or meets with some fresh supply at higher levels.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3236
Today Daily Change	0.0092
Today Daily Change %	0.70
Today daily open	1.3144

Trends
Daily SMA20	1.3267
Daily SMA50	1.3217
Daily SMA100	1.3371
Daily SMA200	1.3538

Levels
Previous Daily High	1.3163
Previous Daily Low	1.3116
Previous Weekly High	1.3341
Previous Weekly Low	1.311
Previous Monthly High	1.3421
Previous Monthly Low	1.2994
Daily Fibonacci 38.2%	1.3145
Daily Fibonacci 61.8%	1.3134
Daily Pivot Point S1	1.3119
Daily Pivot Point S2	1.3094
Daily Pivot Point S3	1.3072
Daily Pivot Point R1	1.3166
Daily Pivot Point R2	1.3188
Daily Pivot Point R3	1.3213

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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