USD/CAD losses ground near 1.3600 amid improved Crude prices, risk-on sentiment


  • USD/CAD continues to move on a downward trajectory on positive market sentiment.
  • Canadian Dollar receives support from the rebound in the WTI price.
  • Investors price in 85 basis points interest rate cuts by the Fed in 2024.

USD/CAD extends its losses for the third consecutive session, trading lower around 1.3600 psychological level during the Asian session on Tuesday. The rebound in Crude oil prices and positive market sentiment provide some support for the Canadian Dollar (CAD).

Western Texas Intermediate (WTI) price has managed to break a four-day losing streak, hovering around $75.30 per barrel at the moment. All eyes are on the upcoming crucial meeting of OPEC+, where there's widespread anticipation of a decision to deepen and extend cuts to oil production.

The US Dollar Index (DXY) has hit its lowest point since late August, reaching 103.07 on Tuesday. The downward trend persists, driven by a decrease in US Treasury yields, particularly with the 2 and 10-year bond yields easing to 4.87% and 4.40%, respectively, at the moment.

US Dollar receives downward pressure as the traders factor in almost 85 basis points of cuts in 2024 by the Federal Reserve (Fed). Additionally, the risk-on sentiment is reinforced by the latest report from the US Census Bureau, indicating a notable 5.6% drop in New Home Sales for October at 679K, falling short of the market consensus of 725K.

Looking ahead, investors will likely focus on Canada's Gross Domestic Product (GDP) on Thursday, followed by Net Change in Employment on Friday. Meanwhile, on Tuesday, attention is on US data, including the Housing Price Index and CB Consumer Confidence. Additionally, speeches from Federal Reserve (Fed) officials will provide valuable insights into the central bank's perspective on the economic landscape.

USD/CAD: technical levels to watch

Overview
Today last price 1.3604
Today Daily Change -0.0012
Today Daily Change % -0.09
Today daily open 1.3616
 
Trends
Daily SMA20 1.3735
Daily SMA50 1.3678
Daily SMA100 1.3548
Daily SMA200 1.3517
 
Levels
Previous Daily High 1.3661
Previous Daily Low 1.3615
Previous Weekly High 1.3766
Previous Weekly Low 1.3594
Previous Monthly High 1.3892
Previous Monthly Low 1.3562
Daily Fibonacci 38.2% 1.3633
Daily Fibonacci 61.8% 1.3644
Daily Pivot Point S1 1.36
Daily Pivot Point S2 1.3585
Daily Pivot Point S3 1.3554
Daily Pivot Point R1 1.3646
Daily Pivot Point R2 1.3677
Daily Pivot Point R3 1.3692

 

 

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