USD/CAD testing the 1.3305 area again, after hitting a fresh low near 1.3265


  • USD/CAD post modest gains on Wednesday remains in recent range. 
  • Dollar supported by modestly higher yields. 
  • US data: new home sales rise above expectations in January. 

The USD/CAD pair is trading back at the 1.3300 area after hitting a fresh daily low at 1.3271. Overall, the pair continues to trade sideways, unable to make a run beyond 1.3305. The improvement in risk sentiment and higher crude oil prices limited the upside on Wednesday. 

Equity prices in Wall Street are recovering. The Dow Jones lost nearly 900 points yesterday and today gains 1.30%. Investors appear to see an opportunity after the sharp decline in prices. The key driver continues to be the spread of the coronavirus. The list of countries with infected patients rose further. 

US bond yields bounce to the upside. The 10-year US Treasury yield dropped on Tuesday to a record low and currently stand at 1.34%. The move in the bond market offered support to the greenback. The DXY is rising on Wednesday after falling during three consecutive days. Data from the US came in better-than-expected. New Home Sales rose 7.9% in January to an annual rate of 764K, above the 710K of market consensus. 

Crude oil prices erased losses over the last hours, with the WTI barrel rising back to the $50 area from one-year lows. The move pushed USD/CAD to 1.3270 but the momentum in the Loonie did not last and the pair rose back to the 1.3305 area. 

From a technical perspective, the USD/CAD is trading sideways in the range between 1.3305 and 1.3265. A consolidation above 1.3310 would likely clear the way to more gains, targeting the February high at 1.3328. On the flip side, below 1.3265 the next support stands at 1.3240.

USD/CAD

Overview
Today last price 1.329
Today Daily Change -0.0003
Today Daily Change % -0.02
Today daily open 1.3293
 
Trends
Daily SMA20 1.3263
Daily SMA50 1.3152
Daily SMA100 1.3178
Daily SMA200 1.3213
 
Levels
Previous Daily High 1.3306
Previous Daily Low 1.3267
Previous Weekly High 1.328
Previous Weekly Low 1.3202
Previous Monthly High 1.3255
Previous Monthly Low 1.29
Daily Fibonacci 38.2% 1.3291
Daily Fibonacci 61.8% 1.3282
Daily Pivot Point S1 1.3272
Daily Pivot Point S2 1.325
Daily Pivot Point S3 1.3233
Daily Pivot Point R1 1.331
Daily Pivot Point R2 1.3327
Daily Pivot Point R3 1.3349

 

 

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