USD/CAD sits near 2-1/2 month tops, around mid-1.3300s

Weaker oil prices undermined Loonie and helped regain traction.
The USD climbs to fresh multi-year tops and remained supportive.
Traders now eye US ISM manufacturing PMI for a fresh impetus.

Haresh Menghani FXStreet

The USD/CAD pair held on to its positive tone through the early European session and is currently placed near 2-1/2 month tops set in the previous session.

After the overnight late pullback, a combination of supporting factors helped the pair to regain some positive traction on Tuesday and find acceptance above the 1.3345 heavy supply zone, at least for now.

The US Dollar climbed to fresh multi-year tops, further beyond the 99.00 handle, amid renewed hopes of a potential US-China trade deal, though a modest pullback in the US Treasury bond yields capped the upside.

Fall in Oil prices weighed on Loonie

Adding to this, a negative trading mood around Crude Oil prices undermined demand for the commodity-linked currency - Loonie - and further collaborated to the pair's bid tone for the third consecutive session.

Oil prices fell on Tuesday on the back of growing market worries about the global economic growth and a rise in OPEC output, rising for the first time this year in August in the wake of higher supply from Iraq and Nigeria.

It would now be interesting to see if bulls are able to capitalize on the latest bullish breakout as the focus now shifts to the US economic docket, highlighting the release of ISM manufacturing PMI, for some fresh impetus.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3354
Today Daily Change	0.0030
Today Daily Change %	0.23
Today daily open	1.3324

Trends
Daily SMA20	1.3285
Daily SMA50	1.3183
Daily SMA100	1.3294
Daily SMA200	1.3317

Levels
Previous Daily High	1.3362
Previous Daily Low	1.3312
Previous Weekly High	1.3334
Previous Weekly Low	1.3224
Previous Monthly High	1.3346
Previous Monthly Low	1.3178
Daily Fibonacci 38.2%	1.3343
Daily Fibonacci 61.8%	1.3331
Daily Pivot Point S1	1.3304
Daily Pivot Point S2	1.3284
Daily Pivot Point S3	1.3255
Daily Pivot Point R1	1.3353
Daily Pivot Point R2	1.3382
Daily Pivot Point R3	1.3402

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD risks a deeper drop below 1.1750

EUR/USD keeps its vacillating mood in place as the the NA session drwas to a close on Tuesday, hovering below the 1.1800 hurdle amid acceptable gains in the US Dollar. In the meantime, market participants and the FX galaxy are expected to closely follow President Trump’s SOTU speech around 2AM GMT.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Australia CPI to highlight persistent price pressures, backing a hawkish outlook

Australia will release its key set of inflation figures for the month of January on Wednesday, with the Consumer Price Index expected to rise by 3.7%, slightly lower than the 3.8% in the last month of 2025.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.