- USD / CAD has been on the defensive for the past few hours, mainly based on a gradually weakening USD.
- The pair has moved below the 1.2800 level again and is testing the mid-December triple top at 1.2790.
He USD / CAD has seen a downside extension in recent trade which has seen the pair drop below the 1.2800 level, Tuesday’s FX opening levels are closer to 1.2850. The move is being driven primarily by a weaker US dollar rather than a strong Canadian dollar, amid choppy market conditions. Currently, USD / CAD is trading at a loss of around 0.3% or just over 40 pips.
Loonie adjusts to the dynamics of the US dollar
USD / CAD, like AUD / USD, NZD / USD, and more, operate primarily based on global risk appetite and the dynamics of the US dollar. In fact, this week there are no economic, political or other events on the calendar. So the focus is on passing more stimulus south of the border (the question now is whether the Senate will approve the increase in stimulus controls to $ 2,000 after the House gave the go-ahead on Monday) .
Arguably the more the US government spends, the better for Canada, whose export sectors are disproportionately exposed to the US market compared to its other G10 peers. Therefore, CAD could outperform.
Eyes are also on developments in the crude oil markets, which are juggling the competing issues of incoming US fiscal stimulus and ongoing mass vaccines against rising Covid-19 cases in Europe. and elsewhere (which seems likely to trigger tighter closures in the first quarter of 2021), reducing demand for crude in the short term, as well as OPEC + ‘s planned phasing out of production cuts since early January.
USD / CAD tests mid-December triple top
USD / CAD has reversed to test a triple top that was in play in mid-December, tying the highs on December 11, 14 and 16 at 1.2790. A break below this level is likely to open the door for a gradual move back towards 1.2700 and the yearly lows set just below 1.2690.
Four hour chart
Technical levels
USD / CAD
| Panorama | |
|---|---|
| Today’s Last Price | 1.2808 |
| Today’s Daily Change | -0.0037 |
| Today’s Daily Change% | -0.29 |
| Today’s Daily Opening | 1.2845 |
| Trends | |
|---|---|
| SMA of 20 Daily | 1.2817 |
| SMA of 50 Daily | 1.2995 |
| SMA of 100 Daily | 1.3102 |
| 200 SMA Daily | 1.3431 |
| Levels | |
|---|---|
| Daily Preview Maximum | 1.2876 |
| Daily Previous Minimum | 1.2814 |
| Weekly Preview Maximum | 1.2958 |
| Weekly Prior Minimum | 1.2786 |
| Monthly Previous Maximum | 1.337 |
| Minimum Previous Monthly | 1.2923 |
| Daily Fibonacci 38.2% | 1.2837 |
| Fibonacci Daily 61.8% | 1.2852 |
| Daily Pivot Point S1 | 1.2813 |
| Daily Pivot Point S2 | 1.2782 |
| Daily Pivot Point S3 | 1.2751 |
| Daily Pivot Point R1 | 1.2876 |
| Daily Pivot Point R2 | 1.2907 |
| Daily Pivot Point R3 | 1.2938 |
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