USD/CAD rises to near 1.3500 on market caution, lower Crude oil prices

USD/CAD continues its winning streak on the upbeat US Dollar.
The decline in the WTI price weakens the Canadian Dollar.
US Dollar cheers the market sentiment change due to the Middle East conflict.

Akhtar Faruqui FXStreet

USD/CAD extends its gains for the fifth successive session, trading higher near to the 1.3500 psychological level during the Asian session on Wednesday. The geopolitical situation in the Middle East is prompting investors to adopt a cautious stance, which is in turn supporting the US Dollar (USD) against other major currencies, including the Canadian Dollar (CAD).

The decline in Crude oil prices is exerting pressure on the Canadian Dollar (CAD), consequently providing support to the USD/CAD pair. Canada, being the largest oil exporter to the United States (US), is particularly sensitive to fluctuations in oil prices. West Texas Intermediate (WTI) crude oil is hovering around $72.10 per barrel after recent losses.

The downward pressure on WTI prices is attributed, in part, to a slight increase in net output from US Crude oil production facilities during the week. Additionally, the completion and expansion of the Trans Mountain pipeline in Canada play a significant role in transporting Crude oil from production areas to refineries and export terminals. Canada's increased Crude oil production in November has positioned the country as the fourth-largest global producer of barrels.

On the US side, the US Dollar Index (DXY) maintains its winning streak, propelled by improved US bond yields. Traders are showing restraint in pricing in potential interest rate cuts by the Federal Reserve (Fed), providing upward support for the Greenback. The ongoing possibility of an escalation in the Israel-Gaza conflict has shifted the positive market sentiment to caution, leading to increased demand for the US Dollar.

USD/CAD: additional technical levels

Overview
Today last price	1.35
Today Daily Change	0.0002
Today Daily Change %	0.01
Today daily open	1.3498

Trends
Daily SMA20	1.3329
Daily SMA50	1.35
Daily SMA100	1.3568
Daily SMA200	1.348

Levels
Previous Daily High	1.3502
Previous Daily Low	1.3424
Previous Weekly High	1.3443
Previous Weekly Low	1.3341
Previous Monthly High	1.362
Previous Monthly Low	1.3178
Daily Fibonacci 38.2%	1.3472
Daily Fibonacci 61.8%	1.3454
Daily Pivot Point S1	1.3447
Daily Pivot Point S2	1.3397
Daily Pivot Point S3	1.337
Daily Pivot Point R1	1.3525
Daily Pivot Point R2	1.3552
Daily Pivot Point R3	1.3603

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold holds above $4,000/three-month low as Fed hike bets and firm USD cap upside

Gold struggles to capitalize on its modest recovery from levels below the $4,000 psychological mark, or a three-month low set earlier this Friday, and retains a bearish tone through the first half of the European session. Federal Reserve officials recently signaled there is no urgency to raise interest rates. Traders, however, are still pricing in around an 80% chance that the US central bank will raise borrowing costs again at its December policy meeting.

Bitcoin, Ethereum, and Ripple rebound as major support levels cap recent sell-off

Bitcoin, Ethereum and Ripple rebound modestly on Friday after correcting and testing their key support zone the previous day. BTC holds the 50-day EMA, ETH finds support around the 100-day EMA, while XRP holds the horizontal floor near $1.300. The price action of these top three cryptocurrencies suggests a recovery if this critical support zone holds; a decisive close below these levels suggests a deeper correction.

The week ahead – UK budget, Shell, BP and HSBC and NatWest results

Financial markets have undergone another turbulent week with concerns about public sector debt levels, the impact of energy policy and higher oil and gas prices, and what events in France might mean for the UK economy going forward.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.