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  • USD/CAD bounces off 1.3215, snapped three-day downtrend earlier in Asia.
  • Although Florida loves Trump, Biden inches closer to 270 required majority votes.
  • Final results will take two more days, increased uncertainty can favor USD.
  • Scheduled economics from the US, Canada will offer intermediate moves, election updates to keep the driver’s seat.

USD/CAD extends recovery moves from 1.3215 while rising to 1.3240, up 0.70% intraday, during the pre-European trading on Wednesday. In doing so, the Loonie pair part ways from the last three days’ declines as the US dollar regains amid US election polls.

Although Trump’s victory in Ohio offers a tough fight to the Democrats, his rival Joe Biden has 223 votes versus 270 required for a win, which in turn keeps the global markets hopeful of a blue wave. Traders cheer hopes of heavy stimulus if the Democratic Party dominates the US Congress amid mixed clues.

However, the US dollar index (DXY) remains positive after marking a notable comeback in Asia. Prices of WTI crude oil, Canada’s main export, trim the initial gains while staying below $39.00, up 1.35% by press time.

Risk barometers like S&P 500 Futures and the US 10-year Treasury yields fizzle the recent upside momentum.

Although the US election updates are likely to keep the driver’s seat, monthly trade numbers from the US and Canada will join the American ADP Employment Change figures for October to offer intermediate moves.

Read: ADP Employment Survey Preview: Sector recovering at a slower pace

Technical analysis

USD/CAD bears will have to conquer the two-month-old support line, at 1.3100 now, to retake the controls.