USD/CAD crawls beyond 1.3550 on risk aversion and lower oil prices

January 9, 2024 2:26 PM +07:00
  • The Dollar extends gains favoured by risk aversion.
  • Lower oil prices are weighing on the Canadian Dollar.
  • USD/CAD’s corrective recovery, might find resistance at 1.3600 and 1.3620. 

The US Dollar keeps a moderate bid tone on Tuesday’s European session and is putting a distance from the two-month highs, at the 1.3475 area hit on Monday.
The Greenback is drawing support from the risk-averse market sentiment. Investors are reluctant to place risky bets awaiting the release of US employment data to confirm that the Federal Reserve’s tightening cycle is over.

Usd Cad Vuot Muc 1 3550 Do Lo Ngai Rui Ro Va Gia Dau Giam Pipscollector

Lower oil prices are hurting the Canadian Dollar

Beyond that, the lower oil prices, with the IUS benchmark WTI hovering right above five-month lows, at $72.20 is acting as a headwind to the loonie.

In Canada, the BoC is widely expected to keep rates at the current 5% level and start rolling back the tightening cycle in early 2024.

From a technical perspective, the pair is correcting higher, after a 3% sell-off in November. The next resistances are likely to be at the 4h 50 SMA, at 1.3600 ahead of the November 30 high, 1.3622 and 1.3700.

Supports are 1.3520 and the December 4 low at 1.3475.

Technical levels to watch


Today last price 1.3552
Today Daily Change 0.0012
Today Daily Change % 0.09
Today daily open 1.354
Daily SMA20 1.3683
Daily SMA50 1.3687
Daily SMA100 1.3566
Daily SMA200 1.3517
Previous Daily High 1.3562
Previous Daily Low 1.348
Previous Weekly High 1.3661
Previous Weekly Low 1.3487
Previous Monthly High 1.3899
Previous Monthly Low 1.3541
Daily Fibonacci 38.2% 1.3531
Daily Fibonacci 61.8% 1.3511
Daily Pivot Point S1 1.3493
Daily Pivot Point S2 1.3446
Daily Pivot Point S3 1.3411
Daily Pivot Point R1 1.3575
Daily Pivot Point R2 1.361
Daily Pivot Point R3 1.3657

Quote source: Fxstreet

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