USD/CAD rebounds swiftly from 1-1/2 week lows, jumps to 1.4100 neighbourhood


  • A modest intraday rebound in the USD assisted USD/CAD to gain some positive traction.
  • An intraday pullback in oil prices undermined the loonie and remained supportive of the move.

The USD/CAD pair recovered around 80-90 pips from sub-1.40 levels, or 1-1/2 week lows and shot to fresh session tops in the last hour.

The pair stalled its recent sharp pullback from multi-year tops and the intraday bounce was supported by some signs of easing bearish pressure surrounding the US dollar.

Following a week-long downtrend, triggered by the Fed's unlimited QE, the greenback managed to find some support at lower levels and extended some support to the major.

The pair's intraday uptick was further supported by a modest intraday pullback in crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie.

As investors digested the latest optimism over a massive $2.2 trillion US economic stimulus package, concerns over a plunge in demand kept a lid on the early positive move in oil prices.

Thursday's unprecedented jump in the US initial weekly jobless claims provided further evidence of the devastating impact on the US economy from the coronavirus pandemic.

The incoming data fueled worries over an imminent global recession. This comes on the back of the coronavirus-led travel bans and added to concerns over shrinking oil demand.

It, however, remains to be seen if the ongoing bounce back closer to the 1.4100 round-figure mark is backed by any genuine buying or is solely led by some near-term short-covering move.

Technical levels to watch

USD/CAD

Overview
Today last price 1.4066
Today Daily Change 0.0046
Today Daily Change % 0.33
Today daily open 1.402
 
Trends
Daily SMA20 1.3903
Daily SMA50 1.3499
Daily SMA100 1.3331
Daily SMA200 1.3264
 
Levels
Previous Daily High 1.4276
Previous Daily Low 1.401
Previous Weekly High 1.4668
Previous Weekly Low 1.3788
Previous Monthly High 1.3465
Previous Monthly Low 1.3202
Daily Fibonacci 38.2% 1.4112
Daily Fibonacci 61.8% 1.4175
Daily Pivot Point S1 1.3928
Daily Pivot Point S2 1.3836
Daily Pivot Point S3 1.3662
Daily Pivot Point R1 1.4194
Daily Pivot Point R2 1.4368
Daily Pivot Point R3 1.446

 

 

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 keeps gains above 0.6100 on Australian Trade data

Having regained 0.6100 on a jump in the weekly Australian Consumer COnfidence data, AUD/USD consolidates the spike to 0.6120 after the country's Trade and Job Ads data failed to inspire the bulls. US dollar trades broadly flat amid a better market mood. RBA in focus.

AUD/USD News

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.

USD/JPY News

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

Forex MAJORS

Cryptocurrencies

Signatures