#USDCAD @ 1.35457 is pressured as the commodity complex picks up a bid on China. (Pivot Orderbook analysis)

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• USD/CAD is pressured as the commodity complex picks up a bid on China.
• Fed Jerome Powell’s speech will be important for the days ahead.

The pair currently trades last at 1.35457.

The previous day high was 1.3646 while the previous day low was 1.3409. The daily 38.2% Fib levels comes at 1.3555, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3499, expected to provide support.

USD/CAD is under pressure by some 0.24% ahead of the Federal Reserve’s chairman Jerome Powell’s speech. Meanwhile, the Canadian dollar strengthened on Wednesday, paring back nearly all of its previous day’s drop. Despite data suggesting that Canada’s economy expanded faster than expected in the third quarter, the loonie on Tuesday fell to its worst level in over four weeks at 1.3645.

The USD/CAD exchange rate is 1.3553 at the time of writing and has fluctuated between a low of 1.3489 and a high of 1.3593. China risks continue to drive markets and signs that the nation would soon reopen its economy have lifted the commodity complex mid-week. The oil market helped CAD on Wednesday, with West Texas Intermediate prices increasing as China started immunizing senior citizens against COVID-19. Authorities announced the lifting of lockdowns in around half of the districts throughout the southern metropolis of Guangzhou on Wednesday afternoon.

Local officials were instructed to withdraw “temporary control orders” or to reclassify some regions as low risk in official announcements. They also declared the end of widespread PCR testing. OPEC+ is also expected to convene on Sunday with the possibility of reducing quotas once further at the same time as a report revealed a significant decline in US oil stocks.

Investors will be watching closely to see whether Fed chair Jerome Powell provides any new signs that the US central bank may be nearing the end of its tightening cycle as his speech is the important event for the day.

Given the uncertainty around upcoming jobs and inflation reports, Powell may contest the idea that a turn is imminent. However, market expectations may become muddied if different Fed officials’ opinions on future monetary policy diverge.

When it meets on December 13–14, the Fed is anticipated to raise rates by an extra 50 basis points. The fed funds rate is predicted by traders to rise to 5.06% in June from its current level of 3.83% before reverting to 4.69% by December 2023.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3534 at the time of writing. Pair opened at 1.3587 and is trading with a change of -0.39 % .

The pair is trading above its 20 Daily moving average @ 1.3429, below its 50 Daily moving average @ 1.3578 , above its 100 Daily moving average @ 1.3282 and above its 200 Daily moving average @ 1.3019

The previous day high was 1.3646 while the previous day low was 1.3409. The daily 38.2% Fib levels comes at 1.3555, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3499, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3448, 1.331, 1.3211
• Pivot resistance is noted at 1.3685, 1.3784, 1.3922

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