USD/CAD steadily climbs to session top, around mid-1.3200s


  • USD/CAD reverses an early dip to 1.3225 area amid weaker oil prices.
  • The uptick seemed rather unaffected by the prevalent USD selling bias.

The USD/CAD pair climbed around 20 pips from daily lows and refreshed session tops in the last hour, albeit lacked any strong follow-through.

The pair showed some resilience below the very important 200-day SMA and managed to find some support near the 1.3225 region (overnight swing lows) despite the prevalent selling bias surrounding the US dollar.

Sliding oil prices lend some support

Weaker crude oil prices, now down around 0.70% for the day, undermined demand for the commodity-linked currency – loonie and turned out to be one of the key factors that helped limit the pair's early downtick.

Oil prices on Tuesday retreated farther from multi-week tops amid growing concerns about a slowing global demand outlook, which outweighed the recent OPEC+ agreement to deepen crude output cuts in early 2020.

Meanwhile, the intraday uptick seemed rather unaffected by some renewed USD weakness, led by persistent uncertainty about a potential phase one US-China trade deal and the ongoing slide in the US Treasury bond yields.

It, however, remains to be seen if the pair is able to capitalize on the momentum or meets with some fresh supply at higher levels amid absent relevant market-moving economic releases on Tuesday, either from the US or Canada.

This coupled with investors' reluctance to place aggressive bets ahead of the highly anticipated FOMC monetary policy update on Wednesday might further contribute toward capping any runaway rally for the major.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3244
Today Daily Change 0.0016
Today Daily Change % 0.12
Today daily open 1.3228
 
Trends
Daily SMA20 1.326
Daily SMA50 1.3217
Daily SMA100 1.3231
Daily SMA200 1.328
 
Levels
Previous Daily High 1.3267
Previous Daily Low 1.3222
Previous Weekly High 1.3322
Previous Weekly Low 1.3158
Previous Monthly High 1.3328
Previous Monthly Low 1.3114
Daily Fibonacci 38.2% 1.3239
Daily Fibonacci 61.8% 1.325
Daily Pivot Point S1 1.3212
Daily Pivot Point S2 1.3195
Daily Pivot Point S3 1.3167
Daily Pivot Point R1 1.3256
Daily Pivot Point R2 1.3283
Daily Pivot Point R3 1.33

 

 

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