USD/CAD slides to fresh multi-week lows, approaching 1.3400 mark

USD/CAD remained under some selling pressure for the third straight session on Wednesday.
The impasse over US fiscal stimulus, surging COVID-19 cases continued weighing on the USD.
Bulls seemed rather unimpressed by sliding oil prices, which tend to undermine the loonie.

Haresh Menghani FXStreet

Increasing selling pressure around the greenback pushed the USD/CAD pair to fresh six-week lows, around the 1.3425 region ahead of the US opening on Wednesday.

The pair failed to capitalize on its intraday uptick, instead met with some fresh supply near the 1.3485 region and drifted into the negative territory for the third consecutive session. The downfall was exclusively sponsored by the sustained US dollar selling and seemed rather unaffected by a weaker tone surrounding crude oil prices, which tend to undermine the commodity-linked currency – the loonie.

The USD remained under some selling pressure amid growing market worries that the ever-increasing coronavirus cases could delay the US economic recovery. This coupled with the impasse over the next round of the US fiscal stimulus measures failed to impress the USD bulls. It is worth reporting that Republicans and Democrats have been struggling to reach consensus on a $3 trillion relief bill.

Meanwhile, oil prices pulled back from four-month hits set on Tuesday after a report showed that the US stockpiles rose more than expected. Moreover, rising US-China tensions also caused some headwinds for crude, albeit did little to lend any support to the USD/CAD pair. The more closely government data on supplies from the Energy Information Administration (EIA) will be released Wednesday.

Apart from this, developments surrounding the US stimulus package will play a key role in influence the USD price dynamics and produce some meaningful trading opportunities.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3426
Today Daily Change	-0.0033
Today Daily Change %	-0.25
Today daily open	1.3459

Trends
Daily SMA20	1.358
Daily SMA50	1.3652
Daily SMA100	1.3842
Daily SMA200	1.3513

Levels
Previous Daily High	1.3537
Previous Daily Low	1.3425
Previous Weekly High	1.3646
Previous Weekly Low	1.3502
Previous Monthly High	1.3802
Previous Monthly Low	1.3316
Daily Fibonacci 38.2%	1.3468
Daily Fibonacci 61.8%	1.3494
Daily Pivot Point S1	1.341
Daily Pivot Point S2	1.3362
Daily Pivot Point S3	1.3298
Daily Pivot Point R1	1.3522
Daily Pivot Point R2	1.3586
Daily Pivot Point R3	1.3634

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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