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USD/CAD recovers to 1.3450 area, USD rebounds

  • USD/CAD is trying to recoup the day’s losses after suffering a drop.
  • The CAD is receiving support from the continued rise in oil costs.
  • USD/CAD recovers towards 50% of the day’s retracement.

He USD/CAD began Tuesday in free fall, retreating from the day’s open near 1.3480 and reaching 1.3380. Rising oil prices are boosting the Canadian Dollar (CAD) as concerns about global supply constraints cause crude oil costs to peak.

Despite the decline in CAD, USD/CAD is recovering towards the mid zone. Dollar traders remain attentive to the next publication of the Federal Reserve (Fed) that is just around the corner.

Fed will keep rates on hold, but investors will watch rhetoric

The Fed’s latest rate call will drop in markets on Wednesday, while the Fed’s rate call and subsequent press conference are scheduled for tomorrow at 18:00 GMT.

The Fed is generally expected to leave rates unchanged for the time being, keeping benchmarks at 5.5%. The Federal Open Market Committee (FOMC) will also release its economic projections and inflation outlook figures, something investors will be quick to process.

It’s a light economic calendar week for the CAD, and market momentum will be firmly in the hands of crude oil and dollar traders.

USD/CAD Technical Outlook

USD/CAD is testing the 1.3450 level in late trading of the day, after the rapid decline earlier in the session.

The pair lost 0.72% from Tuesday’s opening prices, near 1.3475, but the midday recovery brings the pair closer to the 68% retracement of the day’s decline.

The rapid rise in crude oil prices has driven the USD/CAD pair lower on daily candles, and the pair has closed in the red for seven of the last eight consecutive trading sessions.

The USD/CAD pair has declined beyond the 200-day simple moving average (SMA) in trading on Tuesday. If the selling pressure continues, the pair will challenge the latest low near 1.3100, while a bullish recovery will have to reclaim the 1.3700 area to establish a decided uptrend.

USD/CAD Daily Chart

USD/CAD Technical Levels


Latest price today 1.3441
Today I change daily -0.0045
Today’s daily change -0.33
Today’s daily opening 1.3486
daily SMA20 1.3572
daily SMA50 1.3418
SMA100 daily 1.3402
SMA200 daily 1.3464
Previous daily high 1.3528
Previous daily low 1.3472
Previous weekly high 1.3639
Previous weekly low 1.3493
Previous Monthly High 1,364
Previous monthly low 1.3184
Daily Fibonacci 38.2 1.3493
Fibonacci 61.8% daily 1.3507
Daily Pivot Point S1 1.3463
Daily Pivot Point S2 1.3439
Daily Pivot Point S3 1.3406
Daily Pivot Point R1 1.3519
Daily Pivot Point R2 1.3552
Daily Pivot Point R3 1.3576

Source: Fx Street

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