USD/CAD reverses a knee-jerk slide to 1.3570 area amid falling oil prices
• The prevalent USD selling bias prompts some aggressive long-unwinding trade.
• A sharp fall in crude oil prices undermined Loonie and helped limit the downside.
The USD/CAD pair extended its sharp intraday slide and tumbled to 1.3570 area in the last hour, albeit quickly recovered over 40-pips thereafter.
After repeated failed attempts to make it through the 1.3660-65 strong horizontal resistance, the prevalent bearish sentiment surrounding the US Dollar prompted some aggressive long-unwinding trade on the first trading day of the New Year.
The USD bulls held on the defensive amid expectations of a slower pace of Fed rate hikes in 2019, which coupled with partial US government shutdown turned out to be one of the key factors exerting some downward pressure on the major.
However, the ongoing downfall in crude oil prices, amid concerns over global economic growth and a surge in US oil output to an all-time high of 11.537 million bpd in October undermined the commodity-linked currency - Loonie and helped limit deeper losses.
The pair has now moved back above the 1.3600 handle and in absence of any major market moving economic releases, the USD/oil price dynamics might continue to act as key determinants of the momentum through Wednesday's trading session.
Technical levels to watch
Today Last Price: 1.361
Today Daily change: -30 pips
Today Daily change %: -0.220%
Today Daily Open: 1.364
Previous Daily SMA20: 1.3513
Previous Daily SMA50: 1.3317
Previous Daily SMA100: 1.3166
Previous Daily SMA200: 1.3067
Previous Daily High: 1.3658
Previous Daily Low: 1.3422
Previous Weekly High: 1.4134
Previous Weekly Low: 1.3564
Previous Monthly High: 1.4134
Previous Monthly Low: 1.316
Previous Daily Fibonacci 38.2%: 1.3512
Previous Daily Fibonacci 61.8%: 1.3568
Previous Daily Pivot Point S1: 1.3489
Previous Daily Pivot Point S2: 1.3337
Previous Daily Pivot Point S3: 1.3252
Previous Daily Pivot Point R1: 1.3725
Previous Daily Pivot Point R2: 1.381
Previous Daily Pivot Point R3: 1.3962