USD/CAD reverses an early dip to 1.3300 mark, back near 1-month tops


  • Firming Fed rate cut expectations continued to weigh on the US Dollar.
  • Weaker oil prices undermined the Loonie and helped limit the downside.

The USD/CAD pair reversed an early dip to the 1.3300 neighbourhood and is currently placed at session tops, well within the striking distance of one-month high set last Thursday.
 
As investors looked past Friday's mixed US monthly jobs report, a goodish pickup in the US Treasury bond yields extended some support to the US Dollar and turned out to be one of the key factors lending some support to the major.

Weaker oil prices remain supportive

It is worth reporting that the latest US employment details showed that the US economy created less-than-expected 136K jobs in September and the unemployment rate unexpectedly dropped to a near 50-year low level of 3.5%.
 
However, the prevalent weaker sentiment around Crude Oil prices continued undermining demand for the commodity-linked currency – Loonie and helped limit any deeper losses rather assisted the pair to regain some traction on Monday.
 
Oil prices continued to be weighed down by fears that the global economic slowdown will weigh on future demand growth and receding optimism over progress in the US-China trade talks, especially after reports indicated that China wants the scope of any deal to be narrow.
 
The uptick, so far, lacked any strong bullish conviction amid growing speculations that the Fed will cut interest rates further at its upcoming policy meeting in October. Hence, Monday’s scheduled speech by the Fed Chair Jerome Powell might play a key role in influencing the near-term USD price dynamics and provide some meaningful impetus.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3324
Today Daily Change 0.0012
Today Daily Change % 0.09
Today daily open 1.3312
 
Trends
Daily SMA20 1.3252
Daily SMA50 1.3257
Daily SMA100 1.325
Daily SMA200 1.3294
 
Levels
Previous Daily High 1.3344
Previous Daily Low 1.3299
Previous Weekly High 1.3349
Previous Weekly Low 1.3205
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3316
Daily Fibonacci 61.8% 1.3326
Daily Pivot Point S1 1.3292
Daily Pivot Point S2 1.3273
Daily Pivot Point S3 1.3248
Daily Pivot Point R1 1.3337
Daily Pivot Point R2 1.3363
Daily Pivot Point R3 1.3382

 

 

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