USD/CAD trades with losses amid US Dollar weakness

The Loonie sets a second consecutive day of losses.
The US Dollar lost appeal after the debt-ceiling agreement on Sunday.

Patricio Martín FXStreet

The USD/CAD, at the time of writing, is trading at 1.3590, below its opening price by 0.15 % during the American session. Following the debt ceiling agreement announcement on Sunday, market’s sentiment turned positive and weakened the US Dollar while American traders enjoyed a long weekend on Memorial Day. On the other hand Canada's economic calendar has nothing relevant to offer and the Canadian Dollar benefits from the positive market environment.

Wall Street future’s rise amid US debt-ceiling agreement

US President Joe Biden and Republican House Speaker Kevin McCarthy jointly declared that they have come to a consensus on extending the debt ceiling, on Sunday. Under the proposed deal, the government would be permitted to borrow funds without raising the limit; instead, the limit would be temporarily suspended until 2025. However, the proposal still needs to be approved by Congress, but U.S. officials are optimistic about its passage. As a reaction, Wall Street futures cheered on the announcement and edged higher, applying pressure on the US Dollar.

Levels to watch

According to the daily charts, the USD/CAD holds a neutral to bearish outlook for the short term. However, indicators remain in positive territory and the convergence of the 20 and 100-day Simple Moving Averages (SMA) at the 135.00 area suggests that more upside may be in store for the pair.

The 1.3580 zone is the immediate support level for the USD/CAD. A break below this level could pave the way towards the mentioned convergence at the 1.3500 level. Furthermore, the 1.3620 zone is key for USD/CAD to gain further traction. If cleared, we could see a more pronounced move towards the monthly high at 1.3650 and the psychological mark at 1.3700.

USD/CAD

Overview
Today last price	1.3586
Today Daily Change	-0.0031
Today Daily Change %	-0.23
Today daily open	1.3617

Trends
Daily SMA20	1.3507
Daily SMA50	1.3525
Daily SMA100	1.3511
Daily SMA200	1.3493

Levels
Previous Daily High	1.3655
Previous Daily Low	1.3601
Previous Weekly High	1.3655
Previous Weekly Low	1.3485
Previous Monthly High	1.3668
Previous Monthly Low	1.3301
Daily Fibonacci 38.2%	1.3622
Daily Fibonacci 61.8%	1.3634
Daily Pivot Point S1	1.3594
Daily Pivot Point S2	1.357
Daily Pivot Point S3	1.354
Daily Pivot Point R1	1.3648
Daily Pivot Point R2	1.3678
Daily Pivot Point R3	1.3702

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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