USD/CAD met with some fresh supply on Tuesday amid renewed selling around the greenback. COVID-19 jitters weighed on oil prices, which might undermine the loonie and help limit losses. Tuesday’s key focus will be on a US runoff election in Georgia and US ISM Manufacturing PMI. The USD/CAD pair traded with a negative bias through the early European session, albeit has managed to trim a part of its intraday losses and was last seen hovering near the 1.2765-70 region. The pair failed to capitalize on the previous day’s solid bounce of around 130-35 pips from multi-year lows, instead witnessed some fresh selling during the first half of the trading action on Tuesday. The downfall marked the fifth day of a negative move in the previous six and was exclusively sponsored by the emergence of some fresh selling around the US dollar. Hopes for a strong global economic recovery in 2021 remained supportive of the underlying bullish tone in the financial markets. This, along with the likelihood of more US fiscal stimulus and expectations that the Fed would keep rates lower for a longer period, continued denting the greenback’s safe-haven status and exerted some downward pressure on the USD/CAD pair. That said, uncertainty about a US runoff election in Georgia seemed to have tempered the enthusiasm. Voting for the election in Georgia begins later this Tuesday and the outcome of two Senate seats will determine the control of the chamber. The election will also have a big impact on the incoming US President Joe Biden’s ability to pursue his preferred economic policies. Meanwhile, concerns about the continuous surge in new COVID-19 cases and the imposition of fresh lockdowns in the UK dampened prospects for a recovery in the fuel demand. Adding to this, deadlocked talks about potential changes in February output weighed on oil prices. This, in turn, could undermine the commodity-linked loonie and help limit the downside for the USD/CAD pair. This makes it prudent to wait for some follow-through selling before traders start positioning for the resumption of the USD/CAD pair’s recent bearish trend. Tuesday’s release of the US ISM Manufacturing PMI and developments surrounding the coronavirus saga might influence the USD price dynamics, and produce some short-term trading opportunities around the USD/CAD pair. Technical levels to watch FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD to revisit the 1.3540/1.3483 September and early December highs – Commerzbank FX Street 1 year USD/CAD met with some fresh supply on Tuesday amid renewed selling around the greenback. COVID-19 jitters weighed on oil prices, which might undermine the loonie and help limit losses. Tuesday’s key focus will be on a US runoff election in Georgia and US ISM Manufacturing PMI. The USD/CAD pair traded with a negative bias through the early European session, albeit has managed to trim a part of its intraday losses and was last seen hovering near the 1.2765-70 region. The pair failed to capitalize on the previous day's solid bounce of around 130-35 pips from multi-year lows, instead witnessed some… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.