- USD/CAD regains positive traction following the previous session’s brief pause.
- Sustained USD buying remained supportive; bulls shrug off positive oil prices.
- The set-up confirms bullish bias and supports prospects for additional gains.
The USD/CAD pair regained some positive traction on Wednesday, with bulls making a fresh attempt to build on the momentum beyond the 1.3300 round-figure mark.
Following the previous session's brief pause, the pair caught some fresh bids on Wednesday and built on its recent strong positive momentum witnessed over the past one month or so.
Stronger USD remained supportive
Sustained US dollar buying interest, underpinned by upbeat US ISM Manufacturing PMI published earlier this week, was seen as one of the key factors driving the pair higher.
This coupled with worries over coronavirus, despite China's efforts to contain the outbreak, further benefitted the greenback's perceived safe-haven status against its Canadian counterpart.
Meanwhile, the uptick seemed rather unaffected by a mildly positive tone surrounding crude oil prices, which tend to underpin demand for the commodity-linked currency – the loonie.
Given last week's sustained move beyond the very important 200-day SMA, Wednesday's positive move reaffirms a near-term bullish breakout and sets the stage for additional gains.
Hence, some follow-through strength, towards challenging the 1.3335-40 supply zone, now looks a distinct possibility as traders now look forward to the US macro data fro a fresh impetus.
Wednesday's US economic docket highlights the release of the ADP report and ISM Non-Manufacturing PMI, which might influence the USD price dynamics and produce some trading opportunities.
Technical levels to watch
|Today last price||1.3295|
|Today Daily Change||0.0014|
|Today Daily Change %||0.11|
|Today daily open||1.3281|
|Previous Daily High||1.3303|
|Previous Daily Low||1.3264|
|Previous Weekly High||1.3255|
|Previous Weekly Low||1.3148|
|Previous Monthly High||1.3255|
|Previous Monthly Low||1.29|
|Daily Fibonacci 38.2%||1.3279|
|Daily Fibonacci 61.8%||1.3288|
|Daily Pivot Point S1||1.3262|
|Daily Pivot Point S2||1.3244|
|Daily Pivot Point S3||1.3223|
|Daily Pivot Point R1||1.3301|
|Daily Pivot Point R2||1.3322|
|Daily Pivot Point R3||1.334|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.