USD/CAD recoils from five-month highs near 1.29 on Canada election, oil recovery

USD/CAD edges lower in the Asian session on Tuesday amid corrective pullback.
Mixed Canadian Federal Election polls, oil recovery influence Loonie’s performance.
US Dollar Index remains strong above 93.00 despite mild correction of late.

Rekha Chauhan Independent Analyst

The USD/CAD pair trades just below 1.2800 on Tuesday following the previous session’s spectacular gains. The pair peaked at five-month high near 1.2900 in the overnight session, backed by the greenback’s strength.

At the time of writing, USD/CAD is trading at 1.2794, down 0.25% for the day.

The major theme for today’s session remains the upcoming Canadian election’s result, where a clear majority of Justin Trudeau’s party would bring much needed political stability in the country.

Nevertheless, as per the Canadian network CTV’s decision desk Justin Trudeau’s Liberal Party is winning the election while declaring Trudeau as the next Prime Minister for the third straight term. However it was not clear the party had a minority or majority.

Meanwhile, WTI oil prices locked gains as experts pointed to signs of tightening US oil supplies. ANZ analyst said, global utilities are switching to fuel oil due to rising gas and coal prices. Furthermore, reduced output from the Gulf of Mexico after Hurricane Ada implied lesser supply in near term.

As for now, traders are waiting for Canada’s New Housing Price Index, US Housing Starts, and Building Permits to take fresh trading impetus.

USD/CAD levels to consider

USD/CAD

Overview
Today last price	1.2786
Today Daily Change	-0.0038
Today Daily Change %	-0.30
Today daily open	1.2826

Trends
Daily SMA20	1.2644
Daily SMA50	1.2606
Daily SMA100	1.2411
Daily SMA200	1.2524

Levels
Previous Daily High	1.2896
Previous Daily Low	1.2751
Previous Weekly High	1.2774
Previous Weekly Low	1.2601
Previous Monthly High	1.2949
Previous Monthly Low	1.2453
Daily Fibonacci 38.2%	1.2841
Daily Fibonacci 61.8%	1.2807
Daily Pivot Point S1	1.2753
Daily Pivot Point S2	1.268
Daily Pivot Point S3	1.2608
Daily Pivot Point R1	1.2898
Daily Pivot Point R2	1.297
Daily Pivot Point R3	1.3043

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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