USDCAD seesaws around multi-day low, picks up bids of late. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• USDCAD seesaws around multi-day low, picks up bids of late.
• Challenges to sentiment from the US election results, China’s covid conditions test USDCAD bears.
• DXY rebound, higher inventories weigh on oil prices.
• Risk catalysts eyed for directions ahead of US CPI, speech from BOC’s Macklem.

The pair currently trades last at 1.3439.

The previous day high was 1.3527 while the previous day low was 1.3387. The daily 38.2% Fib levels comes at 1.3441, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3474, expected to provide resistance.

USDCAD grinds near 1.3450 heading into Wednesday’s European session amid dicey markets. The anxiety over US government gridlock joins covid fears from China and a cautious mood ahead of the key data/events to restrict the Loonie pair’s latest moves.

That said, softer prices of Canada’s key export item, namely the WTI Crude Oil, tease the USDCAD bulls. The energy benchmark drops for the third consecutive day down 0.85% intraday near $87.75 by the press time.

Also read: WTI bears attack $88.00 as concerns over China’s demand, US midterm elections join API inventory build

Elsewhere, the US Dollar Index (DXY) prints mild gains around 109.70 amid the escalating fears of the US government gridlock due to the latest updates from the mid-term elections. Also fueling the market’s fears and the USDCAD prices could be the headlines suggesting a six-month high covid number from China and further virus-led lockdowns.

While portraying the market’s mood, the S&P 500 Futures struggle to track Wall Street’s gains while the US 10-year Treasury yields probe bears after snapping a four-day downtrend the previous day.

It should be noted, however, that the anxiety ahead of Thursday’s US Consumer Price Index (CPI) for October and a speech from the Bank of Canada (BOC) Governor Tiff Macklem challenge the pair buyers. The reason could be linked to the recently mixed US data and Fedspeak, as well as the BOC’s easing in the rate hikes.

Also read: US Inflation Preview: Markets set to seize on falling Core CPI to revive pivot play, three scenarios

A one-week-old descending trend line portrays the USDCAD pair’s recent weakness. Also keeping the sellers hopeful are the bearish MACD signal and the clear break of the previous support line from early October. Additionally, the pair’s sustained trading below the 200-SMA also adds strength to the downside bias.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 1.3439 at the time of writing. Pair opened at 1.3433 and is trading with a change of 0.04% % .

The pair is trading below its 20 Daily moving average @ 1.3661, below its 50 Daily moving average @ 1.3511 , above its 100 Daily moving average @ 1.3216 and above its 200 Daily moving average @ 1.2969

The previous day high was 1.3527 while the previous day low was 1.3387. The daily 38.2% Fib levels comes at 1.3441, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3474, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3371, 1.331, 1.3232
• Pivot resistance is noted at 1.3511, 1.3589, 1.365

[/s2If]
Join Our Telegram Group