USD/CAD snaps two-day losing streak as US dollar gains beat WTI recovery


  • USD/CAD justifies the previous day’s pullback from 1.3270.
  • Greenback keeps the throne amid mixed sentiment, WTI ignores API data.
  • US CPI will decorate the calendar, risk catalysts can entertain traders as well.

USD/CAD keeps the early-Asian recovery gains while trading around 1.3330, up 0.28% on a day, ahead of Wednesday’s European session. Amid a lack of domestic catalysts and the market’s emphasis on the US dollar gains, the loonie pair fails to take clues from the recent recovery in WTI, Canada’s biggest export item.

The American currency recovers from more than two year low amid hopes of US stimulus and vaccine news. US dollar index (DXY) prints four-day winning streak while taking the bids near 93.85, up 0.21% on a day, by the press time. Even if American Congress hasn’t yet started discussing the coronavirus (COVID-19) relief package, markets stay upbeat amid expectations that President Donald Trump will conquer any barriers as he recently did with executive orders for unemployment benefits. Talking about the vaccine, the Republican Leader Trump cited a deal with Moderna to mark his efforts to overcome the pandemic.

On the contrary, WTI fails to respect weekly inventory data from the private data provider the American Petroleum Institute’s (API). As per the latest upside, API Weekly Crude Oil Stock eased the previous declines in inventories while flashing a draw of -4.4M during the week ending on August 07. The reason could be traced from the market’s concerns that the US and China’s phase one deal is still on the table and can confront the virus-led economic slowdown. After yesterday’s upbeat comments from the People’s Bank of China’s (PBOC) Governor Yi Gang, China’s Vice Foreign Minister showed readiness to keep the trade talks on the table.

Elsewhere, RBNZ’s QE fails to derail market sentiment ahead of the US Consumer Price Index (CPI) data for July. The headlines inflation is expected to recover from 0.6% prior to 0.8% but the CPI ex Food & Energy (YoY) may recede from 1.2% to 1.1% during the reported month.

Other than the US CPI, traders will also keep eyes on the US-China trade news, virus updates and news on the US aid package for further direction.

Technical analysis

Bearish MACD and five weeks of continuous decline favor the USD/CAD bears. As a result, a confluence of 200-week SMA and an ascending trend line from February 2018, around 1.3175/70 become the landmark for traders. On the contrary, any pullback will be considered ephemeral unless crossing a downward sloping trend line from March high, at 1.3430 now.

Additional important levels

Overview
Today last price 1.3338
Today Daily Change 37 pips
Today Daily Change % 0.28%
Today daily open 1.3301
 
Trends
Daily SMA20 1.3406
Daily SMA50 1.3498
Daily SMA100 1.375
Daily SMA200 1.3531
 
Levels
Previous Daily High 1.3361
Previous Daily Low 1.3271
Previous Weekly High 1.3451
Previous Weekly Low 1.3234
Previous Monthly High 1.3646
Previous Monthly Low 1.3331
Daily Fibonacci 38.2% 1.3305
Daily Fibonacci 61.8% 1.3326
Daily Pivot Point S1 1.3261
Daily Pivot Point S2 1.3221
Daily Pivot Point S3 1.3171
Daily Pivot Point R1 1.3351
Daily Pivot Point R2 1.3401
Daily Pivot Point R3 1.3441

 

 

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

AUD/USD drops back towards 0.7100 amid fresh US dollar buying

AUD/USD is under pressure, heading towards 0.7100  amid broad US dollar strength. Risk sentiment sours on US stimulus woes and virus contagion, lifting the safe-haven dollar. Focus remains on US stimulus news, coronavirus stats. 

AUD/USD News

USD/JPY picks up bid in tandem with US dollar, eyes on 105.00

USD/JPY's recovery from Wednesday's 0.85% decline is picking up pace in Asia, as the US dollar gains its feet amid risk-aversion. The reports that the BOJ will likely cut its growth and price forecasts for the current fiscal year at this week's monetary policy meeting weigh on the yen. 

USD/JPY News

Gold: $1883 is the level to beat for the bears

Gold is under pressure starting out a fresh week, battling $1900 amid resurgent haven demand for the US dollar. The greenback regains ground on Monday, as the second wave of the coronavirus accelerates at full steam in Europe.

Gold News

WTI hits three-week lows below $39

WTI hits three-week low, extending the previous week's 3% decline. The daily chart indicators scope for further losses. The daily chart relative strength index now shows an ascending triangle breakdown, a bearish pattern.

Oil News

Forex Today: Sentiment could take a turn to the worse amid coronavirus explosion

The American dollar remained under selling pressure at the end of the week, amid political jitters in the US. Republicans and Democrats have continued to discuss a coronavirus stimulus aid package.

Read more

Forex MAJORS

Cryptocurrencies

Signatures