- Loonie cuts gains against the dollar and is the worst among those linked to commodities.
- The bearish tone in USD / CAD is easing but the downtrend remains strong.
The USD / CAD is falling on Tuesday and hit the lowest intraday levels in two weeks at 1.3010 before bouncing towards the 1.3050 zone, where it is currently trading.
The rises in the stock markets have weakened the dollar, which retreats throughout the market and favors currencies linked to commodities. Among the latter, the loonie is the worst performer. Both the AUD / CAD and the NZD / CAD are rising strongly.
US President Trump authorized a transition of power, though still not conceding defeat. This is seen as a move towards a normal start to the presidency of Joseph Biden and prompted buying in the equity markets. In addition, it was already coming off a positive day with new encouraging news about vaccines for the coronavirus.
Again about 1,3000
From a technical point of view, the USD / CAD remains bearish. The recent bounce indicates that it will not be easy to break the 1.3000 barrier. In case of a confirmation below, we would expect more falls for the pair. Possible targets are at 1.2950 and 1.2925 / 30 (November 2020 low). To the upside, a close above 1.3140 would ease the negative bias for the dollar and enable a rally towards 1.3200.
Technical levels
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