#USDCAD @ 1.33763 grinds near intraday high after posting the biggest daily fall in two weeks. (Pivot Orderbook analysis)

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• USD/CAD grinds near intraday high after posting the biggest daily fall in two weeks.
• Oil prices stabilize following a rebound from the 10-month low.
• Market’s anxiety ahead of the key data/events joins China’s Covid woes to challenge the Canadian Dollar.

The pair currently trades last at 1.33763.

The previous day high was 1.346 while the previous day low was 1.3373. The daily 38.2% Fib levels comes at 1.3406, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3427, expected to provide resistance.

USD/CAD picks up bids to refresh intraday high near 1.3380 during early Wednesday. The Loonie pair’s latest rebound could be linked to the market’s sour sentiment, as well as a pause in the WTI crude oil’s recovery moves. However, a cautious mood ahead of the key data/events challenges the pair buyers.

Risk appetite fades the previous day’s optimism as headlines suggesting a jump in China’s Covid numbers joined the Reserve Bank of New Zealand’s (RBNZ) utterly hawkish move to suggest that the global central banks aren’t out of steam. Additionally, anxiety ahead of the preliminary readings of November’s PMIs, the Federal Open Market Committee (FOMC) Meeting Minutes and the US Durable Goods Orders for October also weigh on the sentiment.

While portraying the mood, S&P 500 Futures print mild losses while the US 10-year Treasury yields struggle for clear directions near 3.75%.

It’s worth noting that prices of Canada’s biggest export-item WTI crude oil seesaw around $81.00 after bouncing off a 10-month low the previous day. The black gold rose the previous day amid fears of a supply crunch and talks of the oil price cap, as well as Saudi Arabia’s rejection to support the OPEC+ output increase signals.

On Tuesday, firmer sentiment and recovery in oil prices favored the USD/CAD bears. On the same line could be the upbeat prints of Canada’s Retail Sales for September. In doing so, the Loonie pair ignored firmer US data and hawkish comments from the US Federal Reserve (Fed) officials. That said, Richmond Fed Manufacturing Index improved to -9 for November versus -10 prior while Kansas City Federal Reserve President Esther George recently said, “(We) could well take a higher interest rate for some time to convince households to hold on to savings.”

Moving on, USD/CAD is likely to witness a sluggish day amid the market’s pre-event fears. However, traders will pay major attention to the oil fundamentals and the Fed Minutes for clear directions.

A clear U-turn from the 21-DMA hurdle of 1.3466, as well as a downside break of the one-week-old ascending trend line, currently around 1.3390, keeps the USD/CAD bears hopeful of refreshing the monthly low surrounding 1.3230.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3378 at the time of writing. Pair opened at 1.3373 and is trading with a change of 0.04 % .

The pair is trading below its 20 Daily moving average @ 1.3471, below its 50 Daily moving average @ 1.356 , above its 100 Daily moving average @ 1.326 and above its 200 Daily moving average @ 1.3001

The previous day high was 1.346 while the previous day low was 1.3373. The daily 38.2% Fib levels comes at 1.3406, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3427, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3344, 1.3315, 1.3257
• Pivot resistance is noted at 1.3431, 1.3489, 1.3518

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