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. 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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News