• The market sentiment has moderately improved, as it seems the omicron variant symptoms tend to be mild, per South African health authorities.
  • The US Dollar Index gains some traction as investors weigh the impact of the new variant.
  • USD/CAD in the near term has an upward bias, would find resistance around 1.2800.

On Monday, in the Asian session, the USD/CAD edged lower as COVID-19 worries about the omicron variant scale back a touch after South African health authorities reported that symptoms tend to be mild to moderate, but it appears to be more transmissible. During the New York session, the USD/CAD recovers some earlier day losses, climbing up to 1.2757 at the time of writing.

Global equity indices rise as concerns about the COVID-19 omicron variant ease

The market sentiment is upbeat, as European equity indices trim some of last week’s Friday losses amid thin liquidity conditions, which exacerbated fluctuation across all the financial assets. The US Dollar Index, which retracted all the way nearby 96.00, advances 0.28%, sitting at 96.36. Also, the US 10-year Treasury yield spike seven basis points, up to 1.557%, as market sentiment improves, though the investors are still cautious awaiting more information regarding the omicron variant.

In the meantime, the US crude oil benchmark, Western Texas Intermediate (WTI), which has a strong correlation with the Canadian dollar, is trading at $72.00, nearly 50% of Friday’s decline, caused by COVID-19 worries.

The USD/CAD price action in the overnight session witnessed a dip towards the 1.2715 area, but the pair remains subdued as investors weigh on the severity of the illness that the COVID-19 omicron variant could cause.

That said, market participants focus would lean towards risk appetite. However, macroeconomic data and central bank speakers could move the needle on the USD/CAD pair.

On Monday, the Canadian docket featured the Current Account for the Q3, which increased by 1.37B, lower than the 1.9B expected. On the US front, Pending Home Sales for October on a monthly basis is expected to rise by 1%, which would be revealed at 15:00 GMT. 

Turning to central bank speaking, the Bank of Canada Governor Macklem would cross the wires around 19:00 GMT, whereas Fed Chairman Jerome Powell would do it at 20:05 GMT.

USD/CAD Price Forecast: Technical outlook

In the 1-hour chart, the pair is consolidating around the 1.2715-60 range, above the hourly simple moving averages (HSMA’s), indicating the USD/CAD has an upward bias. A break above the 1.2760 range top would expose the November 26 high at 1.2798, 2 pips short of the 1.2800 figure. A breach of the latter would expose the R1 daily pivot point at 1.2842, followed by the R2 daily pivot at 1.2896.

On the other hand, the daily pivot point at 1.2743 is the first support, followed by the 50 and the 100-HSMA’s at 1.2726 and 1.2701, respectively.

USD/CAD

Overview
Today last price 1.2765
Today Daily Change 0.0021
Today Daily Change % 0.16
Today daily open 1.2744
 
Trends
Daily SMA20 1.2551
Daily SMA50 1.2534
Daily SMA100 1.2566
Daily SMA200 1.2472
 
Levels
Previous Daily High 1.28
Previous Daily Low 1.2647
Previous Weekly High 1.28
Previous Weekly Low 1.2628
Previous Monthly High 1.2739
Previous Monthly Low 1.2288
Daily Fibonacci 38.2% 1.2741
Daily Fibonacci 61.8% 1.2705
Daily Pivot Point S1 1.2689
Daily Pivot Point S2 1.2592
Daily Pivot Point S3 1.2537
Daily Pivot Point R1 1.2841
Daily Pivot Point R2 1.2897
Daily Pivot Point R3 1.2994

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds steady below 1.0200 ahead of EU Sentix

EUR/USD holds steady below 1.0200 ahead of EU Sentix

EUR/USD is treading water below 1.0200 in early Europe. Moody’s cut Italy’s credit rating amid political jitters, Investors assess the US NFP-led big Fed rate hike bets. US-China tensions over Taiwan underpin the US dollar’s safe-haven demand. EU Sentix awaited. 

EUR/USD News

GBP/USD advances towards 1.2100 amid cautious optimism

GBP/USD advances towards 1.2100 amid cautious optimism

GBP/USD is edging higher towards 1.2100, underpinned by a steady US dollar amid a cautiously optimistic market mood. Bumper US NFP data ramped up aggressive Fed tightening expectations. UK political woes and a dovish BOE rate hike could cap the pound's upside. 

GBP/USD News

Gold could challenge $1,750, with big Fed rate hike bets back in play

Gold could challenge $1,750, with big Fed rate hike bets back in play

Gold price rejection at $1,795 recalls sellers, with eyes on $1,750 support again. US NFP blowout jacks up 75 bps Sept Fed rate hike bets to around 70%. The US dollar is likely to remain underpinned at the start of the inflation week.

Gold News

If Tezos price clears this significant hurdle, XTZ holders are in for a treat

If Tezos price clears this significant hurdle, XTZ holders are in for a treat

Tezos price shows a steady grind toward its forecasted target. This development comes after a successful breakout from a bullish pattern. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures