USD/CAD sellers attack 1.2700 as WTI strength joins US dollar weakness


  • USD/CAD stays depressed while probing the weekly low.
  • WTI refreshes multi-week top, US dollar index extends the previous day’s losses.
  • Risks linger virus woes and US political turmoil battle stimulus hopes.
  • US CPI, Fedspeak to decorate calendar, risk headlines become the key.

USD/CAD remains heavy near the intraday low of 1.2703, down 0.06% on a day, during Wednesday’s Asian session. The loonie pair dropped for the first time in the last four days on Tuesday, while also carrying the losses today, amid the broad US dollar weakness and gains in Canada’s main export item crude oil. It should be noted that the mixed clues to justify trading sentiment coupled be spotted for a bid milder downside bias.

Crude prices recently jumped to the fresh high since February 2020, currently up 0.90% at $53.65, after private oil inventories shrank more than the previous readings. Also favoring the commodity is the broadly risk-on mood and US dollar weakness.

Read: WTI refreshes multi-month high above $53.00 on upbeat API stockpile data, focus on EIA figures

On the contrary, the US dollar index (DXY) drops for the second day while marking a 0.08% intraday loss to 89.96. The greenback’s weakness could be attributed to the political drama in the US relating to President Donald Trump’s impeachment and President-elect Joe Biden’s hint of mammoth fiscal stimulus.

While roiling the mood, worsening coronavirus (COVID-19) conditions in the US, the UK and Europe, not to forget Japan and some parts of Asia, probe vaccination drives. That said, S&P 500 Futures and stocks in Asia-Pacific remain mildly bid but the US 10-year Treasury yields snap seven-day north-run.

Looking forward, risk catalysts to remain in the driver’s seat even as December’s Consumer Price Index (CPI) from the US can offer intermediate moves.

Technical analysis

A one-week-old support line near 1.2700 challenges USD/CAD bears targeting the monthly low around 1.2630. Meanwhile, 21-day SMA and a downward sloping trend line from December 21, respectively around 1.2770 and 1.2820, guard the pair’s short-term upside.

Additional important levels

Overview
Today last price 1.2707
Today Daily Change -7 pips
Today Daily Change % -0.06%
Today daily open 1.2714
 
Trends
Daily SMA20 1.2773
Daily SMA50 1.289
Daily SMA100 1.3048
Daily SMA200 1.3354
 
Levels
Previous Daily High 1.2792
Previous Daily Low 1.2711
Previous Weekly High 1.2798
Previous Weekly Low 1.263
Previous Monthly High 1.301
Previous Monthly Low 1.2688
Daily Fibonacci 38.2% 1.2742
Daily Fibonacci 61.8% 1.2761
Daily Pivot Point S1 1.2686
Daily Pivot Point S2 1.2658
Daily Pivot Point S3 1.2605
Daily Pivot Point R1 1.2766
Daily Pivot Point R2 1.2819
Daily Pivot Point R3 1.2847

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 

EUR/USD News

GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 

GBP/USD News

Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures