USD/CAD stretches higher toward 1.4500 handle


  • Risk aversion continues to weigh on crude oil prices.
  • US Dollar Index stays near multi-year highs above 102.50 mark.
  • Coming up: January Wholesale Sales data from Canada.

After staging a corrective slide on Friday, the USD/CAD pair gained traction at the start of the week as the dismal market mood and falling crude oil prices made it difficult for the CAD to find demand. As of writing, the pair was trading at 1.4477, adding 0.8% on a daily basis.

Oil selloff hurts commodity-sensitive CAD

Fears over a long-lasting global recession and its impact on the energy demand and the ongoing price war in the market continue to weigh on crude oil prices. The barrel of West Texas Intermediate (WTI) lost nearly 30% last week and struggles to shake off the selling pressure. At the moment, the barrel of WTI is down 5.65% on the day at $22.10.

On the other hand, the greenback continues to dominate the foreign exchange market amid fears over USD shortage in funding markets and allows the bullish pressure to remain intact. The US Dollar Index, which tested the 103 handle for the first time since early February on Friday, was last up 0.8% on the day at 102.75.

The only data featured in the Canadian economic docket will be the Wholesale Sales figures for January. However, investors are likely to ignore that reading as it won't be reflecting the effects of the coronavirus outbreak on the economy.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.4476
Today Daily Change 0.0112
Today Daily Change % 0.78
Today daily open 1.4364
 
Trends
Daily SMA20 1.3709
Daily SMA50 1.34
Daily SMA100 1.3286
Daily SMA200 1.3244
 
Levels
Previous Daily High 1.4537
Previous Daily Low 1.415
Previous Weekly High 1.4668
Previous Weekly Low 1.3788
Previous Monthly High 1.3465
Previous Monthly Low 1.3202
Daily Fibonacci 38.2% 1.4298
Daily Fibonacci 61.8% 1.4389
Daily Pivot Point S1 1.4163
Daily Pivot Point S2 1.3963
Daily Pivot Point S3 1.3776
Daily Pivot Point R1 1.455
Daily Pivot Point R2 1.4737
Daily Pivot Point R3 1.4937

 

 

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