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USD/CAD rises with minor USD strength, but fails to hold over 1.3400.

On Tuesday, the USD/CAD pair edged higher and seemed to have snapped a two-day losing streak, falling to its lowest level since November 25. Spot prices stuck to a mildly positive tone heading into the North American session and looked set to build on this momentum beyond the 1.3400 round-figure mark.

The gains in the US dollar are mainly attributed to an uptick in Treasury bond yields, along with some repositioning ahead of Fed Chair Jerome Powell’s speech later today. Moreover, investors’ risk sentiment has remained cautious, which is further lending support for safe-haven assets such as gold and greenback currency pairs like USD/CAD.

Looking ahead to Wednesday’s trading session, market participants will be keeping track of any developments surrounding Powell’s speech that could offer fresh insights into the future policy outlook from Federal Reserve officials amid rising inflationary pressures across major economies around the world due to COVID-19 pandemic-related restrictions being eased off gradually by governments worldwide. This could potentially provide more direction for both currencies involved in this pair over the coming days or weeks, depending upon how markets respond after listening closely to what he has to say about current economic conditions globally.

Investors have been keeping a close eye on the US Federal Reserve’s upcoming meetings and rate hikes, as they will play an essential role in driving demand for the US Dollar. The recent mixed US jobs report and disappointing release of the ISM PMI have increased bets that future policy tightening by the Fed may be less aggressive than previously thought.

Traders are also looking ahead to Thursday’s consumer inflation figures, which could provide further insight into what direction the USD/CAD pair is likely to take next. Meanwhile, subdued activity around crude oil prices continues to weigh on both the commodity-linked Loonie and the USD/CAD pair due to worries that a global economic downturn could hurt fuel demand going forward.

USD/CAD
USD/CAD

However, there is some optimism surrounding China’s biggest pivot away from its strict zero-COVID policy, which might provide some support for black liquid prices over time despite these concerns about fuel demand levels dropping off in light of current market conditions. As such, investors should continue monitoring key economic indicators closely, as well as any developments related to China’s policies, since this could impact their decision-making when it comes to investing in either currency or commodities markets moving forward.

The markets have been relatively quiet lately, with no major economic releases from either the US or Canada. As a result, it’s important for traders to exercise caution before placing directional bets. The recent breakdown below the 100-day Simple Moving Average (SMA) is an indication that bearish traders may be in control and could lead to deeper losses. Therefore, any subsequent move up should be viewed as a potential selling opportunity and runs the risk of quickly fading away without making much progress higher.

It’s essential for investors to remain vigilant during times like these when there are limited market-moving catalysts available; keeping an eye on technical levels can help provide guidance on which direction prices might trend next. Additionally, staying informed about macroeconomic events such as central bank decisions or trade negotiations can also prove beneficial since they often influence how assets are priced in financial markets over time periods longer than just one day or week at a time.

Overall, while trading opportunities may still exist even if there aren’t any significant economic releases out right now, it’s important not to get too aggressive with your positions until you have more clarity about where prices might go next. By taking into account both fundamental and technical analysis, investors will be better prepared when deciding how best to approach their trades going forward.

USD/CAD Technical levels to watch

OVERVIEW
Today last price1.3396
Today Daily Change0.0007
Today Daily Change %0.05
Today daily open1.3389
TRENDS
Daily SMA201.3576
Daily SMA501.3517
Daily SMA1001.3479
Daily SMA2001.3152
LEVELS
Previous Daily High1.3446
Previous Daily Low1.3357
Previous Weekly High1.3685
Previous Weekly Low1.3433
Previous Monthly High1.3705
Previous Monthly Low1.3385
Daily Fibonacci 38.2%1.3391
Daily Fibonacci 61.8%1.3412
Daily Pivot Point S11.3349
Daily Pivot Point S21.3308
Daily Pivot Point S31.326
Daily Pivot Point R11.3438
Daily Pivot Point R21.3486
Daily Pivot Point R31.3527
USD/CAD