Search ForexCrunch

   “¢   The continuation of the recent USD rally to six-week tops helped regain traction on Monday.
   “¢   A follow-through weakness in oil prices further undermine Loonie and remain supportive.

The USD/CAD pair caught some fresh bids on Monday, albeit seemed struggling to build on the momentum and move back above the 1.3300 handle.

Combinations of supporting factors helped the pair to regained positive traction at the start of a new trading week and recover a part of Friday’s losses, recorded in the aftermath of solid Canadian jobs data.

Despite the recent dovish tilt by the Federal Reserve, the US Dollar climbed to near six-week highs amid resurfacing US-China trade tensions and was seen as one of the key factors lending some support to the major.  

Meanwhile, WTI crude oil prices added to last week’s slump of nearly 5% and lost some additional ground on Monday, which further undermined the commodity-linked currency – Loonie and remained supportive.

However, the ongoing slide in the US Treasury bond yields kept a lid on any runaway USD rally, which coupled with a modest rebound in oil prices now seemed to collaborate towards capping gains for the major.

It would now be interesting to see if the pair is able to attract any fresh buying interest at the focus remains glued to another round of US-China trade talks on Thursday and Friday in Beijing.

Market expectations over a possible trade deal remain low especially after the US President Donald Trump confirmed on Thursday that he will not meet Chinese President Xi Jinping before a March 1 tariffs deadline.

Moving ahead, there isn’t any major market-moving economic data due for release either from the US or Canada and hence, the USD/oil price dynamics might continue to act key determinants of the pair’s momentum on Monday.

Technical levels to watch


       Today Last Price:  1.3282
       Today Daily change %:  0.13%
       Today Daily Open:  1.3265
       Daily SMA20:  1.3242
       Daily SMA50:  1.3367
       Daily SMA100:  1.3231
       Daily SMA200:  1.3138
       Previous Daily High:  1.333
       Previous Daily Low:  1.3232
       Previous Weekly High:  1.333
       Previous Weekly Low:  1.3084
       Previous Monthly High:  1.3664
       Previous Monthly Low:  1.3118
       Daily Fibonacci 38.2%:  1.327
       Daily Fibonacci 61.8%:  1.3293
       Daily Pivot Point S1:  1.3221
       Daily Pivot Point S2:  1.3177
       Daily Pivot Point S3:  1.3123
       Daily Pivot Point R1:  1.332
       Daily Pivot Point R2:  1.3374
       Daily Pivot Point R3:  1.3418