USD/CAD rebounds modestly toward 1.4070 as oil selloff continues


  • WTI extends declines, trades below $14 on Monday.
  • US Dollar Index is posting modest daily losses below 100.
  • Risk-on atmosphere helps CAD stay resilient against USD.

The USD/CAD pair lost its traction at the start of the week and dropped below the 1.4050 area as the upbeat market mood made it difficult for the greenback to find demand. However, with the selling pressure surrounding crude oil prices picking up steam on Monday, the pair seems to have steadied near its daily lows. As of writing, the pair, which recovered to 1.4075 earlier in the hour, was last seen erasing 0.37% on the day at 1.4050.

WTI falls sharply on Monday

Although heightened hopes of major economies reopening with coronavirus infections and fatalities slowing down boost the market sentiment, crude oil struggles to extend its rebound. As of writing, the barrel of West Texas Intermediate was erasing more than 20% on a daily basis at $13.50.

On the other hand, the upbeat market mood as reflected by surging global equity indexes is weighing on the safe-haven greenback and makes it difficult for the pair to stage a decisive rebound. At the moment, the US Dollar Index is down 0.38% on the day at 99.90.

Later in the day, Statistics Canada's Foreign Portfolio Investment in Canadian Securities will be the only data featured in the economic docket. The next data from the US will be Tuesday's Goods Trade Balance and Wholesale Inventories. 

Technical levels to watch for

USD/CAD

Overview
Today last price 1.4057
Today Daily Change -0.0046
Today Daily Change % -0.33
Today daily open 1.4103
 
Trends
Daily SMA20 1.4075
Daily SMA50 1.386
Daily SMA100 1.3502
Daily SMA200 1.3366
 
Levels
Previous Daily High 1.4121
Previous Daily Low 1.4024
Previous Weekly High 1.4265
Previous Weekly Low 1.4
Previous Monthly High 1.4668
Previous Monthly Low 1.3315
Daily Fibonacci 38.2% 1.4084
Daily Fibonacci 61.8% 1.4061
Daily Pivot Point S1 1.4044
Daily Pivot Point S2 1.3986
Daily Pivot Point S3 1.3948
Daily Pivot Point R1 1.4141
Daily Pivot Point R2 1.4179
Daily Pivot Point R3 1.4238

 

 

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