#USDCAD @ 1.32763 USDCAD has sensed buying interest around 1.3250 as DXY rebounds ahead of US midterm elections outcome. (Pivot Orderbook analysis)

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• USDCAD has sensed buying interest around 1.3250 as DXY rebounds ahead of US midterm elections outcome.
• The change of the House of Representatives’ stewardship to Republicans will dampen expansionary policies.
• Loonie investors are eyeing the release of the inflation figures.

The pair currently trades last at 1.32763.

The previous day high was 1.3361 while the previous day low was 1.3236. The daily 38.2% Fib levels comes at 1.3284, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3313, expected to provide resistance.

The USDCAD pair is displaying a rangebound structure after gauging the cushion around 1.3250 in the Tokyo session. The risk-on impulse has started fading led by rising volatility ahead of the outcome of the US midterm elections and the extended weekend due to the Veterans Day holiday last Friday. The risk-sensitive currencies are facing a loss in the upside momentum.

Anxiety ahead of the US midterm elections has weighed on S&P500 futures. The changing hands of stewardship for the House of Representatives will impact the expansionary policies as additional approval from Republicans will stretch the time for policy execution. Investors have turned anxious as the occurrence could trim economic projections ahead in already vulnerable times when the US economy is subject to recession due to accelerating interest rates.

The US dollar index (DXY) has extended its pullback move to near 107.00 despite the fact that the Federal Reserve (Fed) won’t go for hefty rate hikes as red-hot inflation has cooled down. Also, the long-term US Treasury yields have rebounded to near 3.90%.

Meanwhile, Loonie investors are awaiting Wednesday’s inflation numbers for further guidance. The headline Consumer Price Index (CPI) is seen marginally higher at 7.0% vs. the prior release of 6.9%. While the core CPI that excludes oil and food prices is seen at 6.3%, higher than the prior release of 6.0%.

On the oil front, oil prices have dropped after facing barricades of around $89.00 despite easing Covid-19 restrictions in China. It seems that oil bulls need some solid reasoning for extending its recent rally further.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3276 at the time of writing. Pair opened at 1.3261 and is trading with a change of 0.11 % .

The pair is trading below its 20 Daily moving average @ 1.3595, below its 50 Daily moving average @ 1.3525 , above its 100 Daily moving average @ 1.3229 and above its 200 Daily moving average @ 1.2979

The previous day high was 1.3361 while the previous day low was 1.3236. The daily 38.2% Fib levels comes at 1.3284, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3313, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3211, 1.3161, 1.3086
• Pivot resistance is noted at 1.3336, 1.3411, 1.3461

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