The USD/CAD pair closed at 1. 37727 after placing a high of 1.39855 and a low of 1.37568. Overall the movement of the USD/CAD pair remained strongly bearish throughout the day. The USD/CAD dropped to its lowest since 16th March on Tuesday amid the risk appetite and crude oil strength in the market.
All of the above reasons made the US dollar weak across the board and made it lose 0.8% on that day, dragging the USD/CAD pair to its multi week's low level. Furthermore, WTI Crude oil also remained supportive of the pair USD/CAD when rose to $34.7 on Tuesday and made commodity-linked Loonie stronger against the US dollar. The surge in crude oil prices was due to increased demand after the easing of lockdowns from the big economies across the globe.
The increased global oil demand, the OPEC+ and market-driven cuts rose oil prices and dragged the USD/CAD pair. Meanwhile, the increased geopolitical tensions also supported the Tuesday move of the USD/CAD pair. China's rivalry with the rest of the world has escalated after the coronavirus pandemic. It has raised the geopolitical tensions across the globe, which has increased the risk sentiment in the market.
On the other hand, the US dollar was also weak due to the poor-than-expected US consumer confidence in May. At 19:00 GMT, the CB Consumer Confidence was dropped to 86.6 against the expected 87.1 and weighed on the US dollar, which ultimately dragged the US D/CAD pair on Tuesday.
USD/CAD - Daily Technical Levels
Support Resistance
1.3693 1.3927
1.3606 1.4076
1.3458 1.4162
Pivot Point 1.3841
The USD/CAD has violated the descending triangle pattern, which was supporting the pair around 1.3867. Closing of candles below this level is suggesting chances of further selling bias in the Loonie so that it may head further lower towards the next support area of 1.3730. Violation of this level may cause further selling until the 1.3590 area. Let's keep an eye on 1.3840 level today to open a selling trades below it. Good luck!