USD/CAD slips below 1.3300 after Tuesday’s bearish Doji, eyes on BOC

  • USD/CAD pulls back from nine-day high following a bearish candlestick formation.
  • Recovery in oil prices adds to the pair’s weakness.
  • BOC is widely expected to hold monetary policy unchanged, Rate Statements will be the key.

USD/CAD stays on the back foot around 1.3295 during early Wednesday. The quote flashed a bearish candlestick formation on Tuesday and stretches the weakness by the press time amid oil recovery.

Prices of oil, Canada’s main export item, are on the road to recovery as concerns mount that Saudi Arabia and Iraq will push other global producers to accept deeper output cuts during this week’s meeting in Vienna. Also contributing to the commodity’s strength was the latest private inventory survey data from the American Petroleum Institute (API) that dropped from +3.64M to -3.72M.

On the contrary, trade tensions between the United States (US) and rest of the global leaders, especially with China, continue to spread the fears of another full-fledged trade war and the weak global growth going forward. The US House recently passed sanctions on senior Chinese officials while China’s Foreign Ministry urged to stop wrongdoing regarding Xinjiang Act. The dragon nation previously announced sanctions on the US Non-Government Organizations.

Due to this, market’s risk tone has been heavier with the US 10-year treasury yields revisiting familiar territories around 1.70% while Wall Street flash losses since the start of the week.

Although the Bank of Canada (BOC) isn’t likely to alter benchmark interest rates from 1.75%, latest signals from the Canadian central bank highlighted threats of economic resilience due to the macro risk. As a result, markets will be on the lookout for clues to the same in the BOC rate statement. Before that, Canada’s third-quarter (Q3) Labor Productivity numbers, expected +0.8% versus +0.2% prior, could offer intermediate moves.

Technical Analysis

Tuesday’s bearish Doji around multi-day high signals the pair’s pullback to 21-day Exponential Moving Average (EMA) level of 1.3260 ahead of highlighting 200-day EMA, around 1.3235, for sellers. On the flip side, buyers will look for an upside break of November top, close to 1.3330, before targeting October and September months’ peaks near 1.3350 and 1.3385 respectively.

Additional IMportant levels

Today last price 1.3292
Today Daily Change -5 pips
Today Daily Change % -0.04%
Today daily open 1.3297
Daily SMA20 1.3258
Daily SMA50 1.322
Daily SMA100 1.3225
Daily SMA200 1.328
Previous Daily High 1.3322
Previous Daily Low 1.3282
Previous Weekly High 1.332
Previous Weekly Low 1.3234
Previous Monthly High 1.3328
Previous Monthly Low 1.3114
Daily Fibonacci 38.2% 1.3298
Daily Fibonacci 61.8% 1.3307
Daily Pivot Point S1 1.3279
Daily Pivot Point S2 1.3261
Daily Pivot Point S3 1.3239
Daily Pivot Point R1 1.3319
Daily Pivot Point R2 1.3341
Daily Pivot Point R3 1.3359



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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD off 7-month highs, still firmer as Tories hold the lead

GBP/USD retraces from the new seven-month highs of 1.3180 but remains strongly bid, as weekend polls have reaffirmed a solid lead for PM Johnson's Conservatives. Cable dropped on Friday amid upbeat US data.


EUR/USD steadying above 1.1050 amid upbeat German export data

EUR/USD is trading above 1.1050, attempting a recovery after Germany reported an increase in exports in October. EUR/UDS dropped sharply on Friday amid upbeat US Non-Farm Payrolls and weak German industrial output. 


Forex Today: US-Sino trade tensions prevail, Boris closer to victory, EUR/USD licking its wounds

Trade talks: President Donald Trump has called on the World Bank to stop lending to China, a move that may aggravate tensions, with only six days to go until Washington is set to slap new tariffs on Beijing. Negotiations continue.

Read more

Gold: Sidelined after biggest daily decline in four weeks

Gold is lacking a clear directional bias in Asia, having registered its biggest single-day decline in four weeks on Friday. China's data may embolden President Trump to take more aggressive measures. 

Gold News

USD/JPY in search of a firm direction, stuck in a range above mid-108.00s

USD/JPY was seen oscillating in a narrow band and consolidated last week’s losses. US-China trade uncertainties continued underpinning the JPY’s safe-haven status. Investors now seemed reluctant ahead of the latest FOMC monetary policy update.